20131115 Moving Average Breadth

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20131115 Moving Average Breadth

The markets snapped back once again this week with all the majors making new closing highs except $IWM.  The moving average readings are moving back higher without significant damage, but so far are lagging price.  This is not surprising to me as my theory is Institutions will favor larger and higher price stocks as they chase into the end of the year.  It is easier to place big money in these without making big waves.  That said, we did see improvement across the board and the “potential” divergences are just that (potential) until we see another peak.  Indicators often start a move slow then play catch up as the move extends.  All in all we are still in a strong market with strong breadth and strong probabilities into the end of the year.  I continue to expect dips to be short and sharp until proven otherwise.

Don’t forget to check out the new weekly feature Probing The Universe

I have decided to leave the $SPY chart on just to give a comparison to the universe.

First, the Total universe of 1898 companies posted over the $SPY

11-15-2013 Total Universe with SPY

Universe Composite Index

11-15-2013 Universe

Next I split the universe into 10 custom broad sector indexes

11-15-2013 Consumer Discretionary

Consumer Discretionary (325)

11-15-2013 Consumer Staples

Consumer Staples (91)

11-15-2013 Energy

Energy (132)

11-15-2013 Financials

Financials (316)

11-15-2013 Health Care

Health Care (199)

11-15-2013 Industrials

Industrials (252)

11-15-2013 Materials

Materials (148)

11-15-2013 Technology

Technology (338)

11-15-2013 Telecom

Telecom (24)

11-15-2013 Utilities

Utilities (73)

These are custom indexes so you cannot invest directly in them, but there are plenty of ETFs available for each sector.  For me personally this is another form of relative strength, just with a broader lens .

Good Luck!  It is there for you to make.

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(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
The information set forth herein was obtained from sources which we believe to be reliable, but we do not guarantee its accuracy.  Neither the information, nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities. I or my affiliates may hold positions or other interests in securities mentioned in the blog.  Full Disclaimer
There is no guarantee that the views expressed in this communication will become reality,  Investing in the stock market involves risk and potential loss of principal, Investment strategies should be thoroughly researched and understood before implementing and none of this should be construed as a recommendation

About Author


is a Chartered Market Technician (CMT) and Certified Financial Planner (CFPr) in Greensboro Georgia (Outside Atlanta). Founding partner of Barber Lackey Financial Group, LLC, a Registered Investment Advisor. However, this blog is not affiliated with BLFG and does not make recommendations to buy sell or hold any securities.