Sunday, November 04, 2007

Advance-Decline Line Weakness and Other Themes to Start the Week

* AD Line Lags - I've sung the praises of Decision Point numerous times on this blog, and this post will be no exception. Carl tracks only the common stocks from the NYSE, providing a purer view of how stocks are behaving (eliminating preferred issues, funds, etc.). Note how the advance-decline line for the NYSE issues has lagged significantly of late. I would not be surprised to see us test the August lows. We can see similar weakness in the Cumulative NYSE TICK, which is charted in the weekly post for the Trading Psychology Weblog.

* Building a Trading Plan - Ray Barros has started a new blog, and he begins on a positive note, with a description of the components of a trading plan.

* How You Know You're a Quant - That, a view of what is responsible for the performance of high quality bonds, and more from the Sunday links at Abnormal Returns.

* Trading and Investing - A Dash of Insight provides some insight into common principles of success. See also the post on trading feel and ETF rankings.

* Options Perspective - Adam Warner explores when we should own a call rather than the stock.

* Forecasting Favorable Markets - Henry Carstens' models show favorable expectations at a 20-day time horizon.

* The Week Ahead - Barry Ritholtz looks at 16.7% inflation and other scary economic themes looming this week.