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MCO return to 0. ? for diogenese, fib, other breadth experts


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#1 tozwp

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Posted 29 August 2013 - 12:30 PM

So far on a daily chart, this looks like another return to 0 from below for the MCO. I understand that this could also be a low above a low on the MCO and that it could signal a potential bottom. On the other hand, if one looks at the 5% and 10% lines, these are still below 0. Just eyeballing charts, when a low above a low occurs and the next day the MCO is above the prior day and the 5% is above 0, then a rally ensues. So far this move is missing the 5% above 0. Any comments/observations?

#2 TechMan

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Posted 29 August 2013 - 01:18 PM

And, no "MCO experts" would answer an otherwise excellent question like this. Interesting...

#3 fib_1618

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Posted 29 August 2013 - 01:43 PM

And, no "MCO experts" would answer an otherwise excellent question like this.

Interesting...

Well, I'm sure that the resident expert of the McClellan Oscillator and Summation Index will chime in as soon as he's available to do so.

Me? I'm just a mere conduit who, as I've been told, knows very little on the subject matter.

Fib

Better to ignore me than abhor me.

Wise men don't need advice. Fools won't take it. - Benjamin Franklin

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#4 tozwp

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Posted 29 August 2013 - 02:10 PM

Anyone? Not looking for a food fight, just some insight.

#5 TechMan

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Posted 29 August 2013 - 02:12 PM

I'm just a mere conduit


Hope you're doing fine with all those wires running through you. :=)

Alright, good trading.

Later...

#6 andiron

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Posted 29 August 2013 - 02:29 PM

all i wanted to know is what is meant by "escape velocity"..so i went to my reliable webster dictionary and here what i get "The minimum velocity that a body must attain to escape a gravitational field completely" so my inference for gravitational field is Bear Den or a trading range whereby once you leave it , it is for ever ("completely") so meaning permanently high prices...Or in other words: Blissful utopia....

#7 ogm

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Posted 29 August 2013 - 02:31 PM

Anyone? Not looking for a food fight, just some insight.



I'm no "expert", but I'm guessing Fib wants me to take a stab at the answer, since he's probably PMing you, asking you to paypal him $2.50 for his expert reply :)


Yes, its a positive divergence. Negative momentum in internals is waning at the moment.

If 5% line is above 0, that means the A/D line is above the 19 EMA, as in its already trending up, so with a positive divergence on MCO in an already established positive trend, you get really good chance of a rally.

If 5% is below 0 AND 10 % is below zero ( like now ), that means the A/D line is below 19 and 39 EMAs, so you have already an established negative bias in the market. On top of that 19 EMA crossed under 39 EMA ( Summations below 0 )

My guess is this one can go either way. You may get a pop, or it may break down, just as any other divergence may fail.

Add to this miserably low volume, and I have no trust in anything here. Personally, I'm going to wait for a more definitive setup before changing my bias.

Edited by ogm, 29 August 2013 - 02:33 PM.


#8 PrintFaster

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Posted 29 August 2013 - 02:41 PM

Probably see a higher low on the McClellan, setting up a positive D Semis, homebuilders, retail sectors are outperforming at the moment.

#9 PrintFaster

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Posted 29 August 2013 - 02:50 PM

Still tracking tick for tick, no divergences yet, positive or negative.

http://chart.finance...S&region=US.png

#10 tozwp

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Posted 29 August 2013 - 03:11 PM

Anyone? Not looking for a food fight, just some insight.



I'm no "expert", but I'm guessing Fib wants me to take a stab at the answer, since he's probably PMing you, asking you to paypal him $2.50 for his expert reply :)


Yes, its a positive divergence. Negative momentum in internals is waning at the moment.

If 5% line is above 0, that means the A/D line is above the 19 EMA, as in its already trending up, so with a positive divergence on MCO in an already established positive trend, you get really good chance of a rally.

If 5% is below 0 AND 10 % is below zero ( like now ), that means the A/D line is below 19 and 39 EMAs, so you have already an established negative bias in the market. On top of that 19 EMA crossed under 39 EMA ( Summations below 0 )

My guess is this one can go either way. You may get a pop, or it may break down, just as any other divergence may fail.

Add to this miserably low volume, and I have no trust in anything here. Personally, I'm going to wait for a more definitive setup before changing my bias.


Agree with your assessment. Assumed this would end up being a low volume pre-holiday week so I took it off. Have been back testing ideas using the MCO and breadth which led to the question. I too think it could go either way on this positive divergence but I have too many sectors that are still on sell signals to bother taking a chance on a long here. At this time, the MCO looks like a classic backtest of zero leading to another leg down. If breadth were positive (5% above 0), then I would lean towards a strong bounce here. As it is, I'm guessing that it meanders for a bit or drifts down.