Focusing on the Forest

I did a quick hit on CNBC on my way home yesterday, I was on with David Darst of Morgan Stanley. The main point I wanted to emphasize was that we’re in the phase of the rally where it is more critical to keep tabs on the overall health of the trend as opposed to focusing myopically on the prospects of any one or two stocks.

So an example of the kinds of things one would keep an eye on in this case would be the NYSE McClellan Summation Index, ratio-adjusted. This would give us an intermediate-term (less whippy than short-term) sense of advances to declines relative to the historical averages. You’ll also want to pay attention to the new highs list as well, you want to see a broadening as opposed to a narrowing of leadership – which would indicate exhaustion.

I think I get that across here. Or I try to and fail, but you get the gist…

Source:

CNBC

What's been said:

Discussions found on the web
  1. sex commented on Sep 18

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2013/01/20/focusing-on-the-forest/ […]

  2. blazing trader commented on Sep 21

    … [Trackback]

    […] Read More here to that Topic: thereformedbroker.com/2013/01/20/focusing-on-the-forest/ […]

  3. Blazing Trader Review commented on Sep 22

    … [Trackback]

    […] Read More on to that Topic: thereformedbroker.com/2013/01/20/focusing-on-the-forest/ […]

  4. bitcoin era review 2020 commented on Sep 23

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2013/01/20/focusing-on-the-forest/ […]