Stocks above 50 and 200 day SMAs

0.00782*TVC:DJI+0.06368*SP:SPX+0.01838*TVC:IXIC+0.11204*TVC:RUT1D

0.00782*DJI+0.06368*SPX+0.01838*IXIC+0.11204*RUTTVC

Description

⋅ May 4, 2021 6:17 PM

Disclaimer
The author of this idea is not an investment advisor. The preceding content is intended to be used for informational and educational purposes only.
It is not an advice or inducement for the purchase or sale of the products mentioned. Before making any investment based on your own personal circumstances,
it is very important to do your own research and analysis and also take independent financial advice from a professional to verify any information provided here.

Trend Analysis

Comments

wolffarchitecture

⋅ May 5, 2021 9:34 PM

Much appreciated analysis. Are you implying (in general) just before a major down-turn the percentage of stocks above their moving averages rises ?

Gnothisafton

⋅ May 6, 2021 5:56 AM

@wolffarchitecture,

This conclusion arises from the mere observation of the charts.

At the peak of a bubble almost all stocks are rallying regardless of their fundamentals.

When only 30% of the stocks are profitable, 90% of the stocks may not, for a long time, be above their 200-day Simple Moving Average.

At some point the laws of the market and gravity work, and probably that moment is near.