As mentioned a few weeks ago, I am always working on ways to find potential fast moves early. One of the better short term breadth indicators I use for reversal plays is the Breadth Thrust Indicator which I alway post on the broad sector level, but until now it has taken too long to search through all 49 subsectors to see where we might have a good potential for a more focused bottom. I actually prefer this indicator to the McClellan Oscillator because it is a ratio calculation allowing for better relative comparisons to other subsectors. It is an even bigger bonus is that this indicator gets no respect, most see a bunch of squiggly erratic lines on the chart. I have seen the Breadth Thrust Indicator dismissed so many times, which makes it that much more valuable in my eyes.
This weekend I built this layout that allows quick scanning of all 49 subsectors on one screen. I am still working with its size and scaling for best visual. So far, I like it. I am sure I will include this in the SIN report from time to time, but for now I will be monitoring its characteristics closely to see how best to utilize it in my portfolio management process. Let me know if you have any ideas, I always appreciate a good conversation on how to better use my tools.
Have a great week!
G. Thomas Lackey Jr, CMT CFP® CFS
(All market data above are derived from Stockcharts.com, Esignal, and Reutersdatalink)
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