Tuesday, December 24, 2013

Taper Baby Taper

An interview with David Morgan.

Volume Off the High- Dec 23 Trading Day

Presented with little comment today

High Volume High- Dec 23 Trading Day Edition

Presented with little comment today

Over the High- S&P 500 Price/Volume Heat Map Dec 23

Although volume was incredibly light, it really does not matter as we moved over the highs on the S&P 500. Prices over the highs suggests we are going higher. This follows the market's roughly 50 basis point gain in yesterday's trading, an increase predicated on the strength in financials and technology shares.

The demand looked positive, more or less, in aggregate during yesterday's trading, as more than 50% of sector groups showed stronger price/volume characteristics.

Monday, December 23, 2013

Price/Volume Diffusion Index Still Points to Higher Equity Prices

It has been awhile since I updated this publicly and I wanted to provide you a quick update. My Price/volume Diffusion Index (PVDI, which tracks the trend in the intersection of price and volume levels in the S&P 500, continues to point towards higher equity prices. Currently, the PVDI sits at a demarcation just above the 60 level. Typically, PVDI's above 50 have usually been followed by equity prices that are higher some months out.

More so, the summation index or an index of price volume levels that feeds into the PVDI also continues in an uptrend. This index tends to follow equity prices more so than the PVDI but can be used as confirmation for moves in equity prices.

However, the strength in the upward move continues to peter out. This is as the rolling slope of summation index continues to fall off. A fall in the slope of summation index could be an early warning but I would remain with the premise that the PVDI continues to point towards higher prices, as the the index remains elevated and the summation index trend remains positive.

High Volume High- Dec. 20 Trading Day Edition

 A lot of names making the list on Friday. Strangely (and yes, the following comments comes from my own biases), there does not see to be any rhyme or reason for some of the movers on the list. More so, it almost smacks me as window dressing in some instances. However, the list is what it is.

Bernanke Tightens Monetary Policy by Easing it

Volume Off the High- Dec 19 Trading Day Edition

Last Thursday, PAYX announced earnings that beat estimates. On the announcement, shares broke out of a consolidation phase that lasted roughly a month. this breakout suggest further upside exists in shares.

High Volume High- Dec. 18 Trading Day Edition

Quite a few names making new highs on Fed taper day. More so, quite a few of the names were breaking above consolidations with the volume. This could be a positive signs for these names.