Capitalogix Commentary on the Markets 11/21/08

The market is weak right now.  How do I know?  Aside from the near-audible moan of the world's collective unconscious, price going down is a pretty good primary indicator.  Kidding aside, other indicators are worth looking at here too.  One of them is the NYSE High-Low line. 

The following chart shows this market breadth indicator.  It is calculated at
the end of each day by taking the number of NYSE stocks making New 52-week
Highs and subtracting the number of stocks making New
52-week Lows. What is important to notice is the shape of the line – up is strong (or
bullish), down is weak (or bearish).  Sometimes a picture is worth a
thousand words. 

081119 NYSE New Highs - New Lows

You can view updated versions of this chart anytime on at this link.

Advice For the Markets: Stop It!

So, what should the markets do next?  At this point, humor seems appropriate. I saw this clip of Bob Newhart from Mad TV, last week, and it made me laugh.

Sometimes laughter is the best medicine.

Leave a reply

Your email address will not be published. Required fields are marked *