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


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#11 fib_1618

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Posted 29 August 2013 - 03:24 PM

"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....

Kind of.

The stock market, by default, is always in a bear market. This is why prices seem to decay faster than they do when they rise. In essence, prices can only move higher if there is more demand (liquidity) than the limited supply of the float that's available to be traded. If there is an imbalance in this velocity in which money is moving into the market, it then becomes easier and easier for prices to move in this desired direction with very little effort.

It's very much like the launching of the Space Shuttle...you need maximum (breadth) thrust to lift off the platform - the higher you go, the less fuel you'll need as gravity loses more and more of its influence (the bear market default), to the point where even the smallest of fuel bursts allow the craft to maintain its orbit while fighting this never ending pull of returning the craft to Earth.

The same can then be said of the market when it reaches the +500 level on the NYSE Ratio Adjusted McClellan Summation Index...it's the point where there has been enough energy (thrust) behind the trend to attain a high enough liquidity pool and prices continue to rise more easily because of this. There also times, however, where we can fail just as Challenger unfortunately did as they "throttled up" back in 1986, and you return to earth with unintended consequences in tow.

Here's another analogy I like to use...if you step on the gas pedal in car, you will continue to move forward at faster and faster rates of speed as long as you maintain your foot on the pedal. Once you decide you're going fast enough, you then take your foot off the pedal, but your forward motion continues as you decelerate slowly to the point of stopping. This deceleration would be kin to seeing less and less stocks in the SPX participating when you were at maximum speed, but the SPX itself, in total (the car), continues to move forward anyway until it finally "exhausts" itself of this forward motion created by your keeping your foot on the accelerator pedal.

Anyway, that's the concept. And remember, the great majority of the better indicators out there were developed by "rocket scientists" for they understood the beast that is the equity markets.

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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#12 fib_1618

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Posted 29 August 2013 - 03:30 PM

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 )

Is this your final answer?

Did you maybe want to call a friend to help you on this one?

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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#13 andiron

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Posted 29 August 2013 - 03:33 PM

thanks for putting together beautifully cogent and coherent pointers....

#14 Bernie

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Posted 29 August 2013 - 04:31 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



Too Funny...Thanks for the grins and giggles

#15 ogm

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Posted 29 August 2013 - 05:02 PM

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 )

Is this your final answer?

Did you maybe want to call a friend to help you on this one?

Fib


Yep. As simple as that. No "magic" here.

I understand you're trying to create an aura of magic and mystery that only you can decipher, out of simple 3 data streams and 2 moving averages, so you could charge the subscribers. But there is no f-ing magic.
There are certain patterns that have a certain statistical rate of success or failure, based on context. None of them are fool proof, just statistical probabilities. That's it.

Like the "escape velocity" thing. Simply when breadth momentum reaches certain level, the market has a good chance to continue higher. Or it may fail. And in the past 4 month we've seen both.

#16 da_cheif

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Posted 29 August 2013 - 05:10 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....



>it is for ever<......welcome to the light side.... ;) being in blissful utopia is lonely......snort

Edited by da_cheif, 29 August 2013 - 05:11 PM.


#17 da_cheif

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Posted 29 August 2013 - 05:13 PM

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 )

Is this your final answer?

Did you maybe want to call a friend to help you on this one?

Fib


Yep. As simple as that. No "magic" here.

I understand you're trying to create an aura of magic and mystery that only you can decipher, out of simple 3 data streams and 2 moving averages, so you could charge the subscribers. But there is no f-ing magic.
There are certain patterns that have a certain statistical rate of success or failure, based on context. None of them are fool proof, just statistical probabilities. That's it.

Like the "escape velocity" thing. Simply when breadth momentum reaches certain level, the market has a good chance to continue higher. Or it may fail. And in the past 4 month we've seen both.


> But there is no f-ing magic.<....u got that right.......like taking candy from a baby...... :lol:

#18 da_cheif

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Posted 29 August 2013 - 05:16 PM

thanks for putting together beautifully cogent and coherent pointers....




since when do YOU need POINTERS?.....there are some who get tons of pointers but it goes in one ear and outdaudder :P

#19 fib_1618

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Posted 29 August 2013 - 05:22 PM

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 )

Is this your final answer?

Did you maybe want to call a friend to help you on this one?

Fib


Yep. As simple as that. No "magic" here.

I understand you're trying to create an aura of magic and mystery that only you can decipher, out of simple 3 data streams and 2 moving averages, so you could charge the subscribers. But there is no f-ing magic.
There are certain patterns that have a certain statistical rate of success or failure, based on context. None of them are fool proof, just statistical probabilities. That's it.

Like the "escape velocity" thing. Simply when breadth momentum reaches certain level, the market has a good chance to continue higher. Or it may fail. And in the past 4 month we've seen both.

So you're absolutely sure that the 5% component is associated with the 19 day EMA and that when either the 5% or 10% component is above or below their zero lines it's associated with where the A/D line is in relation to these same EMA's??

And if you wish to continue to be stubborn on this subject matter as to maybe learning something important that could help your own analysis in the future, is there ANYONE out there who would really like to know exactly what these components represent once and for all??

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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#20 slupert

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Posted 29 August 2013 - 05:43 PM

[quote name='tozwp' post='668884' date='Aug 29 2013, 03:10 PM']Anyone? Not looking for a food fight, just some insight.[/quoted
delete

Edited by slupert, 29 August 2013 - 05:44 PM.