Stan Weinstein’s 30 Week High-Low

A lot of interest has been generated recently on the methods of market master; Stan Weinstein and information in his book “Secrets for Profiting in Bull and Bear Markets.“ If you’re unfamiliar with the Prudent Trader – we screen our database of optionable stocks for potential buys and sells basis Stans stage analysis on a nightly basis.

However today we will look at one of Mr. Weinstein’s indicators, the 30 week highs minus lows:

You will notice a divergence going into the March ’09 lows with the October ’08 lows.  An apparent divergence appears to be building the other way at this point.

Here’s a picture of how this nice indicator behaved going into the end of the last bull market.

Looks similar does it not? Perhaps we need a sell as occurred in July ’07, a retest and a sharp non-confirmation in the 30 Hi-Lo indicator.