Tuesday, October 13, 2009
Identifying Range Markets
If you click the top screen, you'll see how the 40 stocks in my basket are trading relative to their opening price. Note the mix of green and red--one nice tell of a range market. A click on the bottom "spectrum" screen from the excellent FinViz site shows how each major S&P 500 sector is trading, with weakness (red) in Financial shares and strength in consumer services. When we see a good deal of black in the spectrum and a relatively even level of red and green, that's another nice tell of a range market.