New Highs Zoooommm. Here is today’s new highs:
Warning.. We do not know if today is the 52 Week New High Peak, there could be more to come. If you are in our trading room you know we monitor the new highs throughout the day looking for weakness. If you want access to my hourly twitter feed: http://twitter.com/redsdata, click on one of the info links in one of the posts to get the decoder ring.
Interesting to note we have passed the previous High with today’s performance. You can see the pattern here is for the market to move sideways until a new high is put in place and then to pullback. Tomorrow in the first half-hour we will be able to predict the new high count for the day and whether we will pass today’s performance or if the high bar is in place for NYSE 52 week new highs. Today’s new high total was 186. About 1/3 to 1/2 of all new highs are made in the first 30 minutes of the day. So our profile range for tomorrow is between 60 to 90 new highs needed in that first 1/2 hour. Stay Tuned in the trading room or the twitter feed.
The Russell New High:
The divergence between the Russell and the NYSE 52 week new highs is interesting, The Russell did not make a new high today but had it done so it would have been the third new high in a row from lower 52 week new highs. A sign that although the market continues to climb up, the past leadership is not there. I would argue that this is a sign of developing weakness but we need to see it played out here and need to err on the side of the bull. Perhaps tomorrow will be another good day for the RUT as it continues to play catch up with its big sisters.
I would argue that market still remain in a bull mode, the Zweig is still a little shy of overbought and would like to reach there with a moderate A/D line tomorrow. There is no real Econ news tomorrow. There is a 30 year treasury auction tomorrow that might feed into the latest bear story of the collapse of the dollar. Watch the pullbacks as indices set new highs as if they were subway third rails.
Happy Trading -
Redliontrader – aka Marlin
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