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I think the A/D line has lost it's value


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#1 CLK

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Posted 23 March 2020 - 05:55 PM

Seems like it was either manipulated higher, or the underlying issues are not what it represented 

10 years ago. This was an easy divergence and very early to be able to short, instead of looking at NYAD which proved an utter failure this time.

 

http://schrts.co/wQyJUUJJ



#2 Douglas

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Posted 24 March 2020 - 02:57 AM

CLK, you're just looking at the wrong AD line.  Go to Stockcharts.com and load daily $NAAD for three months cumulative versus $COMPQ.  There was a perfect longer term sell divergence back at the middle of February and a short term buy divergence at the close yesterday (futures are flying this morning).  I watch both every day, but sometimes one is working and sometimes the other.  These days it's the NASTY.  

 

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#3 OEXCHAOS

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Posted 24 March 2020 - 08:31 AM

NYSE Breadth wasn't helpful at the top, but this was.

http://schrts.co/tXWkzDhm

 

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#4 qqqqtrdr

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Posted 24 March 2020 - 08:54 AM

Commodities were slowly loosing their value 6 months previous to the top...   Market was overbought due to the fundamentals ( although not greatly )...    Currently all my bottoming type charts are stretched to the point we should have a major bounce, at least enough to get McClellan Summation back to the 0-line...   We could bounce around these levels for awhile before we take off....



#5 Ticker

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Posted 24 March 2020 - 09:09 AM

Sold some long positions. Is this the big bounce or another little bounce and then down more? I don't know. I have made a decision to sell rallies until there is some confirmation.

#6 CLK

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Posted 24 March 2020 - 09:14 AM

It's no problem the A/D line didn't diverge, but that was supposed to limit any downside to 10%, not 32%.


Edited by CLK, 24 March 2020 - 09:15 AM.


#7 K Wave

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Posted 24 March 2020 - 10:27 AM

NYSE Summation also had massive divergence on test of the highs. The big gap down out of that divergence was all she wrote...

 

https://stockcharts....id=p83733137120



#8 diogenes227

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Posted 24 March 2020 - 10:44 AM

It's no problem the A/D line didn't diverge, but that was supposed to limit any downside to 10%, not 32%.

What does this mean? I don't understand why you think this would limit the decline.


"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).

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#9 CLK

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Posted 24 March 2020 - 11:19 AM

 

It's no problem the A/D line didn't diverge, but that was supposed to limit any downside to 10%, not 32%.

What does this mean? I don't understand why you think this would limit the decline.

 

 

We have never in 100 years had a bear market decline 20% without the divergence.


Edited by CLK, 24 March 2020 - 11:20 AM.


#10 CLK

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Posted 24 March 2020 - 11:22 AM

NYSE Summation also had massive divergence on test of the highs. The big gap down out of that divergence was all she wrote...

 

https://stockcharts....id=p83733137120

 

I've seen so many failed signals on NYSI that I don't even use it anymore.