mahkoh
1,065 posts
msg #108254
- Ignore mahkoh |
10/2/2012 4:32:07 PM
http://www.schaeffersresearch.com/commentary/content/marketobs/as+concerns+continue+to+mount+be+ready+for+anything/observations.aspx?id=113110
"Just today I noticed another concern creeping up that is worth noting. We've seen a spat of buying climaxes the past two weeks. Simply put, a selling climax occurs when a stock reaches a new 52-week low, then reverses and closes higher on the week. You tend to see a cluster of these near market lows, and they are considered to be spurred by the "smart money" (whoever that really is) accumulating bullish positions. The flipside is a buying climax, which is a new 52-week high followed by a sell-off and lower prices on the week. In other words, this action could be the result of smart money distributing shares.
I've had some great success with this indicator so far this year, and that's why now is troublesome for me. It nailed the early June lows, said stay long in early July, and remained bullish into August.
Now we've had two weeks of increasing buying climaxes. In fact, last week there were 124 signals -- making it two straight weeks of more than 100 buying climaxes, according to all the stocks in our database. For reference, the last time we saw something like that was during the April peak. "
I'm not familiar with their database, but I think the Russell 3000 will do.
Offset it to May 4 and note the spike just before the may decline.
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