ETF Range Projections 1.25.12
A desire presupposes the possibility of action to achieve it; action presupposes a goal which is worth achieving.
- Ayn Rand
Current World Markets:
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The Dominant Price and Volume Relationships
This basic idea comes from Don Worden of TeleChart to which I’ve subscribed for many years. When Don wrote the evening notes he made comments about what he called the dominant price/volume relationship. In other words the percent of stocks that have advanced or declined today on increasing volume and the percent on decreasing volume. Noting several thematic relationships of the readings, for example stocks declining on declining volume is the thematic relationship of a bear market.
The histogram bars show the following; within the S&P 500 only, the percent of stocks that traded on increasing volume (top indicator).
The bottom indicator box contains the stocks that advanced minus the stocks that declined on decreasing volume. In both indicator boxes, if the percent is greater than 50 percent a bold histogram bar (red or black) is printed.