Stage Analysis Forum - Trading & Investing using Stan Weinstein's Stocks Breakout method
Stan Weinstein's Stage Analysis and Market Breadth - Technical Analysis - Printable Version

+- Stage Analysis Forum - Trading & Investing using Stan Weinstein's Stocks Breakout method (https://www.stageanalysis.net/forum)
+-- Forum: Main Board (https://www.stageanalysis.net/forum/Forum-Main-Board)
+--- Forum: Stan Weinstein's Stage Analysis - Stock Charts, Technical Analysis, Learn to Trade, Stocks, ETF, NYSE, Nasdaq (https://www.stageanalysis.net/forum/Forum-Stan-Weinstein-s-Stage-Analysis-Stock-Charts-Technical-Analysis-Learn-to-Trade-Stocks-ETF-NYSE-Nasdaq)
+--- Thread: Stan Weinstein's Stage Analysis and Market Breadth - Technical Analysis (/Thread-Stan-Weinstein-s-Stage-Analysis-and-Market-Breadth-Technical-Analysis)

Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484

$CHWY - Stages Example - isatrader - 2022-01-22

$CHWY is another a really good modern example of the Stan Weinstein's Four Stages. Continuing to decline sharply in Stage 4 currently, giving back almost the entire 2020 Stage 2 advance.

   

#StanWeinstein #stageanalysis #stocks #trading #investing

Cumulative Point & Figure Breakouts - Breakdowns - isatrader - 2022-01-22

Totals for the week:

+149 double top stock breakouts
-1314 double bottom stock breakdowns

-1165 net breakouts - breakdowns

Status: Difficult Environment

   


Cumulative Point & Figure Breakouts - Breakdowns Distance Above / Below its 20 day MA

   


Cumulative Point & Figure Breakouts - Breakdowns MA Momentum Oscillators

               

Percentage of Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined - isatrader - 2022-01-22

US Total % Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined

23.65% (-15.19% 1wk)

Status: Very Difficult Environment (Lower Zone)

Strategy: Very defensive on the long side / Cash / Shorting / Focus on Risk

   


US Total % Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined Point and Figure Chart

Column of Os (Defense) and a double bottom breakdown into the lower zone.

P&F Status: Bear Confirmed

   


20 and 50 day Oscillator

These show the distance that the combined chart is from the 20 day MA and 50 day MA on the chart. Above the zero is positive environment and below is a difficult / negative environment 

       


NYSE Total % Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined

32.32% (-20.01% 1wk)

       


Nasdaq Total % Stocks Above their 50 Day, 150 Day & 200 Day Moving Averages Combined

14.98% (-10.38% 1wk)

       

104 Dow Jones Industry Groups sorted by Relative Strength - isatrader - 2022-01-22

The purpose of the RS tables is to track the short, medium and long term RS changes of the individual groups to find the new leadership earlier than the crowd.

100 is strongest, 0 is weakest

You can find out which stocks are in each industry group by going to https://stockcharts.com/freecharts/industrysummary.html#&t=T and clicking on the name of the group

       


1 week, 2 week, 4 week and 12 week RS changes

               


Gold Mining, Mining and Non Durable Household Products groups were only positive areas of the market this week.

       

On the downside Steel and Semiconductors led the declines. With huge devastation in numerous stocks.

       
Going through the 104 weekly group charts, less than 10% are in Stage 2, and a few of those would be considered borderline.

+1x ATR(21 day) and -1xATR(21 day) breadth charts - isatrader - 2022-01-22

% above +1x ATR(21 day) = 2.33%
% below -1x ATR(21 day) = 67.13%

The cumulative line made a double top. But individually the % above +1x ATR is at the extreme with only 2.33% in an ST uptrend & % below -1x ATR also at its highs.

           

Effective Volume - SPY, QQQ, IWM - isatrader - 2022-01-22

Effective Volume update from http://effectivevolume.com/content.php?156-etf-review on the $SPY, $QQQ, $IWM

Larger player selling accelerated on Thursday across the board. All three indexes remain in Stage 4 on the cumulative EV charts (right).

   

Percentage of Stocks Above Their 20 Day EMAs - isatrader - 2022-01-22

Percentage of stocks above their 20 day EMA in Nasdaq Composite, NYSE, S&P 500 and Small Caps

With all areas of the market strongly in the lower zone. The key for this short term breadth measure is to watch for moves back through the 30% level which I use as the signal for this.

               

Market Breadth - The Weight of Evidence - isatrader - 2022-01-22

I hope that you've now come to appreciate the value of why I do the market breath in so much detail each week, using the Weight of Evidence approach from Stan Weinstein's method.

As we've now been on Difficult Environment status and Defensive strategy since the 19th Nov. https://www.stageanalysis.net/forum/Thread-Stock-Markets-Sectors-Industry-Groups?pid=18811#pid18811

Knowing the trading environment (positive or difficult) and when to be defensive or aggressive is a big part of the battle imo. As each market type & Stage requires a different approach. i.e. why be fully invested during a difficult env, if you can't make progress 25% invested.

So this is why I do the market breadth each week in detail. As it is a critical part of the Stan Weinstein's method, and imo potentially the most important part of the method.