Have the Stock Market Leadership Stocks Gone South?
Stock-Markets / Stock Markets 2011 Jun 13, 2011 - 02:55 PM GMTBy: Marty_Chenard
Every night we run our computers to measure how Leadership stocks are growing or declining in numbers, and then compare that to what is happening to the Broad Market stock number.
Our historical data has found that the Broad Market follows what is happening to the Leadership stocks. They are aptly named, because they are the "lead dogs" that the rest of the market follows.
Today's chart is presented as a courtesy to our free members and won't be shown again here until next month.
The chart below shows the number of Leadership stocks to Broad Market stocks since May of 2010. The Leadership stocks are represented by the red line, and the Broad Market stocks are represented by the blue line.
Since the Leadership stock trend defines the direction for the market, you would expect it to "lead" any new directions ahead of the Broad Market stocks. And that is what happens. So this morning, focus on the red line and how far ahead it is of the blue line ... as well as the direction.
What do you see?
1. The Leadership stocks (red line), is negative and well below the blue line (Broad Market stocks). In fact, the Leaders went negative at the beginning of June, indicating that the Leaders were in retreat and that the Broad Market would follow. Hopefully, you had some kind of warning that this was going to happen. (We issued a Special Report to paid Subscribers on May 16th, indicating that a market turn was about to happen and had our subscribers go to cash at that time.) FYI ... Today's chart is posted every day on Section 4, Chart 1 of the paid subscriber site.
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By Marty Chenard
http://www.stocktiming.com/
Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages . I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information
Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.
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