Past week’s strong 4.57% rally in the SPX was confirmed by strengthening breadth across all market sectors with the Energy sector switching into buy mode in the Sector Breadth Model. As long as we see the positive dynamic in the sector breadth, the bulls are out of troubles.
Nice work. Appreciate it. Thanks Igor!
ReplyDeletecb
Thanks CB,
Deletethis week two more market sectors switched into buy mode (Financial and Healthcare). The dynamic in the market breadth continues to be positive.
thanks Igor. yes, need to start paying atttention to healthcare again. Just saw that run in biotechs which I've missed. Thanks for pointing out those things, sectorwise.
DeleteIgor, you've studied P&F charts quite a bit so I have a Q about that: the SPX has alreadybroken out pricewise, however the bullish % is still in: bearish correction. Should the $BPSPX lead, perhaps? It would seem they shound be in sync more?..what do U think Igpr? thanks (when & if you have time, of course
thx!
cb
Hi CB,
ReplyDeleteI guess you are referring to StockCharts' $BPSPX and confused by the terminology. Bullish percent was introduced by A. W. Cohen and later E. Blumenthal suggested 6 states of the BP P&F chart. More details here:
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:bullish_percent_inde
Bear Correction occurs when the BP index is on a P&F sell signal, but the last column is a rising column of Xs.
Now pay attention that you are looking at the chart with default setting and 2% box size. If you increase the chart sensitivity and change the box size to 1%, you will get the Bull Confirmed signal where the chart is on a buy signal and in a rising column of Xs.
With changing sensitivity you change the chart time horizon. It's like switching from the weekly chart to the daily. What better suites your preferences. I hope this explanation will help.
Igor, thanks! Sorry couln't respond earlier -had an emergency at home yesterday. I'll take a look at that info -thanks very much. I was simply applying the same settings (stockcharts default) for both the $SPX chart and the $bpspx chartt thinking that I was comparing apples with apples. Good thing I asked you Igor. Have a great day!
ReplyDeleteoops sorry Igor, that was me ,CB ...forgot to add that.
DeleteMy pleasure. You have a wonderful day too!
Deletehttp://screencast.com/t/8wPpyUzNG7d
ReplyDeleteIgor, can U tell me how you'd change these parameters to 1 % - I am not sure how to do it.
this is the default setting shown right now http://screencast.com/t/UYl8XibdvH how do I change that (when convenient Igor). thanks!
cb
oops, I see that the jing link is not working, so 2pts/3 box reversal is the default on stockcharts, right..so Igor how do I change "Scaling Method", "box Size", "Atr ped", reversal, and "scale factor" to switch to the %1 setting you are referring to,please? (when convenient Igor). thanks.
ReplyDeletecb
In "Scaling Method" put "User Defined, in "Box Size" print "1.0" then click "Update Chart" and vuala.
ReplyDeleteThanks Igor. I tried & left the other parameters unchanged...and got something -well, not sure what it means -showing a new column of Xs at 78.4..is that right? If I wanted to send you a chart link like I just did with Jing, would it help if I try with a twitter acct (cause wordpress doesn't work either)? Thanks Igor. Don't worry about answering it right now...I am sure you have a ton of things to do...we can get back to it later....thanks.
ReplyDeleteCB
If the vertical axis shows an incremental step in 1% you got it right.
ReplyDelete