Stan Weinstein Stage Analysis and Market Breadth

RE: Stan Weinstein Stage Analysis and Market Breadth

XLU has 85% of its stocks above the MA and is still negative Relative Strength

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RE: Stan Weinstein Stage Analysis and Market Breadth

(07-07-2019, 05:24 PM)malaguti Wrote: XLU has 85% of its stocks above the MA and is still negative Relative Strength

Yep, it rarely outperforms the S&P 500, as Utilities tend to have low percentage moves in general. Hence why it's considered a safe defensive play normally, for low returns, but higher dividend payments. When it leads the relative strength, then the market is normally in trouble. You want to see the cyclical sectors like Consumer Discretionary, Financials, Industrials and Technology leading the relative strength rankings. That's the sign of a Stage 2 bull market imo.

isatrader

Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
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RE: Stan Weinstein Stage Analysis and Market Breadth

(07-07-2019, 06:40 PM)isatrader Wrote:
(07-07-2019, 05:24 PM)malaguti Wrote: XLU has 85% of its stocks above the MA and is still negative Relative Strength

Yep, it rarely outperforms the S&P 500, as Utilities tend to have low percentage moves in general. Hence why it's considered a safe defensive play normally, for low returns, but higher dividend payments. When it leads the relative strength, then the market is normally in trouble. You want to see the cyclical sectors like Consumer Discretionary, Financials, Industrials and Technology leading the relative strength rankings. That's the sign of a Stage 2 bull market imo.

Interesting, never thought of it like that.

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RE: Stan Weinstein Stage Analysis and Market Breadth

(07-07-2019, 07:52 PM)malaguti Wrote:
(07-07-2019, 06:40 PM)isatrader Wrote:
(07-07-2019, 05:24 PM)malaguti Wrote: XLU has 85% of its stocks above the MA and is still negative Relative Strength

Yep, it rarely outperforms the S&P 500, as Utilities tend to have low percentage moves in general. Hence why it's considered a safe defensive play normally, for low returns, but higher dividend payments. When it leads the relative strength, then the market is normally in trouble. You want to see the cyclical sectors like Consumer Discretionary, Financials, Industrials and Technology leading the relative strength rankings. That's the sign of a Stage 2 bull market imo.

Interesting, never thought of it like that.

Is that a reason to avoid utilities stocks?

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RE: Stan Weinstein Stage Analysis and Market Breadth

(07-07-2019, 08:45 PM)pcabc Wrote: Is that a reason to avoid utilities stocks?

I think it depends on what your investing goals are. Steady average returns with good dividends or trying to outperform the market. If the latter, which is what Stage Analysis is about, then personally I'd generally avoid utilities most of the time, as to get outperformance you need to make much larger than average returns on at least a few trades, and keep losses as low as possible. i.e. never below -10% a trade on average imo.

isatrader

Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
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RE: Stan Weinstein Stage Analysis and Market Breadth

Attached are the updated charts of the RABWDB Indicator, Individual Phases, SP500 RABWDB, SP400 RABWDB and SP600 RABWDB.

To learn more about the indicator go to https://dg-swingtrading.blogspot.com/sea...bel/RABWDB



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RE: Stan Weinstein Stage Analysis and Market Breadth

Attached are the updated charts of the US Stock Market Survey Indicator, Individual Stages, SP500 Survey, SP400 Survey and SP600 Survey.

If you want to read my commentary, please go to https://dg-swingtrading.blogspot.com/sea...e%20Survey



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Major US Stock Indexes Update - NYSE, Nasdaq, S&P 500, Nasdaq 100, DJIA & S&P 600

Here are the weekly overview charts of the NYSE, Nasdaq, S&P 500, DJIA & S&P 600 small caps with their US Bullish Percent and Moving Average Breadth.

                       

isatrader

Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
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