About Me

Retired chief investment officer and former NYSE firm partner with 40 years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Tuesday, April 01, 2014

Market Breadth -- Short Term Overextended

Here, I use a daily NYSE cumulative breadth chart with a Keltner channel measure.$NYAD
The chart is a little curious as the price momentum of the market has been rather dull so far
in 2014 while breadth has been fairly strong. That says small upticks in price as sellers are
not shy. But, note as well that the A/D line is getting rather overextended against its Keltner
band, a condition that suggests a new round of price consolidation ahead.

The SPX has received a nice boost from Ms. Yellen's pro - easy money 'pep talk' on Monday
just past. Her fingers are perfectly fine so far although she is playing with fire.

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