One reader asked the following questions and comments and the following video addresses them the best way I can in 5 minutes….
When you look at $COMPQ, do you actually see noticeable differences vs other charts such as SP500 and the Dow?
If so, I really need to pay more attention.What do you think about $AAPL heavy weight on the technology index, do you think it skews things?
Your response is very interesting. I know Tom McClellan prefers the NYSE as a liquidity indicator, because of its rather large size. He says the nasdaq has a lot of underdogs that tend to under perform and is a bad indicator. I think his statement might respond only in terms of liquidity.
I personally don’t have a style that I am comfortable with, thats why I am asking. I tend to be all over the place.
July 9th, 2012 at 6:37 pm
Great video…that commenter has terrible grammar btw.
July 9th, 2012 at 6:39 pm
Unlike Ebay, Aapl actually looks bullish to me. For one, it does not seem sensitive to the dollar, and what is going in Europe.
July 9th, 2012 at 8:13 pm
* Preferring NASDAQ over Dow or SP500 is broadly consistent with the “leading stocks” philosophy of trend following: the action of stocks with strong growth potential show the direction of the market. Right now among the major indexes that’s tech stocks.
* It’s hard to imagine that one can gain a statistical edge over the market without having a well-practice style.
July 9th, 2012 at 8:40 pm
Very good video; figure out style via timeframe – figure out chart indicators – figure out entries and exits.
July 9th, 2012 at 9:47 pm
lol. hope it hit all the points you wanted addressed.
July 9th, 2012 at 9:52 pm
Yeah, it was very helpful! I am going to link this post to my blog, and going to watch it a few more times.
Thanks Again!