The Deterioration of The Intra-day Performances
by David Yu
Here's a brief Sunday update... I'll try to do more as much, and as soon, as I can.
Everyday I took a snap shot of the market breadth right at mid-day (12:45pm ET), and I compare this mid-day data to the end-of-day result. I then compare this day's intraday performance to yesterday's intraday performance. I believe the long-term accumulation of this daily comparison provides me with quite an insight into the market. I also assign volume weighted-average values to different market indices.
Chart 1 is one of such indicators that indicates Nasdaq topping out on or around 6/14/2007. It subsequently dropped below the 20-day simple moving average (red line) on 6/20/2007 and the 50-day simple moving average (blue line) on 6/25/2007.
Chart 1
Among other interesting interpretations, this cumulative
deterioration of the intraday performances tells me that traders are
feeling less confident about holding their positions in the afternoon.
email: david_3011 @ yahoo.com
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