NH/NL

I have been watching Nasdaq New Highs and New Lows since NYSE data is skewed so much by bond issues. Yesterday Nasdaq had 73 New Lows according to my data source which was over 2.8% of total issues. NAMO was slightly positive at 4 so did not meet the original Hidenburg Omen criteria. However i have talked about here in the past that i think that part of his signal was data mining and i think the far superior way to look it is price rank. Yesterday the COMP closed at a price rank of 52 out of 252 (1 year). So we are almost in the top 20% of all closes for the year but made 72 new lows. FLAG! Now we also made 96 New Highs so i dont think this is a strong signal yet but it is something to watch. The last time my personal criteria was met was on 5 out of 6 days 5/4/2012 thru 5/11/2012. Those signals were a little stronger in my opinion as price rank was even higher and new highs were even lower. Keep an eye out though and ill keep you updated. This is not something i use to trade but may give me conviction on shorts if it continues and new highs contract! My IT indicator is still oversold and we are still in a bull market by my criteria so no shorting for me for a at least a couple more days. Unlikely i will take a long in this environment either though. SL

Good one. There are zillion other caution flags all over the place. This market is in a terminal agony. The question is when.

Yup, I had called this as the market's SOS distress signal in the beginning of May.

Finally, not really the Hindenburg Omen, but the Nasdaq new 52-week highs and lows are both greater than 2% of the total issues traded today. This is just one more technical evidence of how this market's out of sync.

Looks like we may get another "Non-Hindenburg" Omen numeric sequence. And, that would be unprecedented. Another history in the making. For those that did heed my warning and keep track of this, you know exactly what I'm referring to. This, to me, is the market's • • • — — — • • • signal.

Nice one Techman. I remembered you followed this as well. I was actually on vacation in Sonoma,CA that week and did not turn on a computer the entire time.....so missed it! My guess (i don't trade on guesses) is the market is headed higher here VST and the NL/NH situation will be ok for a bit. But IF the market then starts falling after the expected strength it wont take much to have a few more H.Os.

Nice one Techman. I remembered you followed this as well. I was actually on vacation in Sonoma,CA that week and did not
turn on a computer the entire time.....so missed it!

My guess (i don't trade on guesses) is the market is headed higher here VST and the NL/NH situation will be ok for a bit. But
IF the market then starts falling after the expected strength it wont take much to have a few more H.Os.

I didn't mean to show you up. I was just supporting your observations.

I love Sonoma. I've got some friends that I used to hang out with still live there.

Edited by TechMan, 18 July 2012 - 11:39 AM.

I didn't mean to show you up. I was just supporting your observations.

I love Sonoma. I've got some friends that I used to hang out with still live there.

I didn't mean to imply that you were trying to show me up =).

Agree about Sanoma. California in general is awesome!

I have been watching Nasdaq New Highs and New Lows since NYSE data is skewed so much by bond issues.

Yesterday Nasdaq had 73 New Lows according to my data source which was over 2.8% of total issues. NAMO
was slightly positive at 4 so did not meet the original Hidenburg Omen criteria. However i have talked about here
in the past that i think that part of his signal was data mining and i think the far superior way to look it is
price rank. Yesterday the COMP closed at a price rank of 52 out of 252 (1 year). So we are almost in
the top 20% of all closes for the year but made 72 new lows. FLAG! Now we also made 96 New Highs so i dont
think this is a strong signal yet but it is something to watch. The last time my personal criteria was met was
on 5 out of 6 days 5/4/2012 thru 5/11/2012. Those signals were a little stronger in my opinion as price rank
was even higher and new highs were even lower. Keep an eye out though and ill keep you updated.

This is not something i use to trade but may give me conviction on shorts if it continues and new highs contract!
My IT indicator is still oversold and we are still in a bull market by my criteria so no shorting for me for a
at least a couple more days. Unlikely i will take a long in this environment either though.

SL

A follow up on this....

On Friday according to DTN data Nasdaq had 46 NHs and 52 NLs with a closing price rank of 21 out of 252. So we closed
in the top 10% of the last 252 trading days (year) and had more new lows than new highs. Again while not a traditional
Omen its another flag.

Today we had a closing price rank of 87 and 12 NHs and 108 NLs.