In order to see what is going on in the stock market, you might want to know how many stocks are above important levels in their own respective chart. What I have found important is to look at the level of any stock around the dates that earnings are reported and if it is above that level, clearly that is bullish. If it is below the "earnings" price level, then it is bearish.
What I am trying to do is to get to something "REAL" - REAL, USEFUL INFORMATION, that tells you something IMPORTANT about what is happening in the market. Up until now, no one thought to do this type of analysis. It hasn't existed either because it is too difficult to put this number together or that our technology doesn't lend itself well to data from multiple suppliers conglomerated on one chart.
So for example: The following information is what people look at because it is rather simple to calculate, track and plot. People like to know what % of index components are above their 50-day average and 200-day moving average prices. This has been the staple of technical analysis for many decades. However, this data lacks true insight into the meaning of what is really happening. There is nothing MAGICAL about 50 days, but it can be useful at times, just like a broken watch is useful two times a day. There is also nothing magical about 200 days either. And once the market has moved dramatically away from 50 and 200 day moving averages, it can take a long time for them to come back to a level for reference. In other words, there is tremendous LAG when you look at 50 and 200 day moving averages.
What I am doing here is using a Google Spreadsheet and TradingView Data, compiling daily what % of stocks are above or below the "LAST REPORTED EARNINGS LEVEL" and reporting it here on this chart.
I have also calculated the price level where the sum of all those levels is, which would imply an important support level (if above) or an important resistance level (if below).
You can see that only 40% (as of 9:44AM EST today, 14 minutes after the open) of the DJIA elements were above their KEY EARNINGS LEVEL. This is down from 46.7% yesterday, which means 2 stocks fell under their last reported earnings price level.
I hope this is interesting and insightful and can help us to find when to be scaling INTO the market and OUT OF the market based upon the DOMINANT TREND.
Cheers.
Tim West
ORIGINAL RESEARCH
4/29/2015
What I am trying to do is to get to something "REAL" - REAL, USEFUL INFORMATION, that tells you something IMPORTANT about what is happening in the market. Up until now, no one thought to do this type of analysis. It hasn't existed either because it is too difficult to put this number together or that our technology doesn't lend itself well to data from multiple suppliers conglomerated on one chart.
So for example: The following information is what people look at because it is rather simple to calculate, track and plot. People like to know what % of index components are above their 50-day average and 200-day moving average prices. This has been the staple of technical analysis for many decades. However, this data lacks true insight into the meaning of what is really happening. There is nothing MAGICAL about 50 days, but it can be useful at times, just like a broken watch is useful two times a day. There is also nothing magical about 200 days either. And once the market has moved dramatically away from 50 and 200 day moving averages, it can take a long time for them to come back to a level for reference. In other words, there is tremendous LAG when you look at 50 and 200 day moving averages.
What I am doing here is using a Google Spreadsheet and TradingView Data, compiling daily what % of stocks are above or below the "LAST REPORTED EARNINGS LEVEL" and reporting it here on this chart.
I have also calculated the price level where the sum of all those levels is, which would imply an important support level (if above) or an important resistance level (if below).
You can see that only 40% (as of 9:44AM EST today, 14 minutes after the open) of the DJIA elements were above their KEY EARNINGS LEVEL. This is down from 46.7% yesterday, which means 2 stocks fell under their last reported earnings price level.
I hope this is interesting and insightful and can help us to find when to be scaling INTO the market and OUT OF the market based upon the DOMINANT TREND.
Cheers.
Tim West
ORIGINAL RESEARCH
4/29/2015
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