Thursday, May 29, 2008

Stock Market Trends and Reversals and Other Perspectives

More About Participation - Note how the S&P emini futures made a fresh price high around 13:20 (top chart), but the difference between advancing and declining stocks (bottom chart) did not confirm. Quite a few S&P 500 sectors also didn't make new highs at that time, including financial stocks (XLF); energy issues (XLE); materials shares (XLB); and consumer discretionaries (XLY). It's a nice illustration of how declining participation often leads short-term market reversals.

Intraday New Highs/Lows - If you didn't catch my Twitter comments for today, note how the expansion of new 20-day highs relative to new lows was an early tell for the morning market rally. Major props to Barchart for tracking those data.

What We Can Learn From Sports - My Naperville neighbor A Dash of Insight shares insights on wisdom from sports and trading. See also this contrarian insight into housing inventory.

More Great Links - Trader Mike has quite a few, including views on ETFs of ETFs; Twitter finance; housing inventory; and more.

Fresh Perspectives? - Quite a few, thanks to the Trader Interview archives; great resource.

Thinking Without Thought - Thanks to an alert reader for picking up on this fascinating interview from Sharp Brains, outlining how conscious and subconscious thought processes are involved in simple and complex decision-making.

Types of Trades - Corey of the Afraid to Trade blog outlines four different kinds of trades for the INO blog, which does a nice job of bringing in guest bloggers.

Trading Signals - I like how Trade By Trend publishes the trade ideas from their computerized system in real time and then tracks the results.