ETF Range Projections & A Quote to Start the Day

Money Management is the true survival key.

- Bill Dunn

Also on tap today outlined on the right.

Asian markets are better this morning, Europe is flat: Nikkei 225 +0.72%, Hang Seng +2.96%, Shanghai +0.97%, DAX -0.08% , and the FTSE 100 -0.20%.

At about 7:50 AM ET, the futures are quiet: Dow +43, S&P +4.3, NAZ -1.25 Oil -$0.39 and Gold -$0.70.

have a great day!

Percent of Stocks Over 200 Day Moving Average

Extremes, be it the percentages over a certain number or other indications are often used by many to determine an overbought / oversold state in the market.  One parameter I learned many moons ago from reading Tom DeMark; many of these so-called overbought / oversold measures can actually be forcasting a continuation move and not a reversal as the majority expect.

In the above chart of the New York Stock Exchange Index,  covering the entire bull market, take note of what happened each time the percent above the 200 day simple moving average reached into the low 80 percent and higher box, the market most often, after perhaps a brief respite continued on to new highs.

Before I get emails about the amount of yield based instruments in the NYSE and claims that it’s a distortion, let’s bring up a chart of the S&P 500 with the same percent of stocks above the 200 day moving average.

While we are not quite at those levels yet — ask yourself is it different this time?