This broad market measure, long conspicuously lagging the NYSE's cumulative advance-decline line, likewise quite considerably lags the Dow's advance off mid-November 2012 bottom. $NYA's 4th wave of 5 waves up from mid-November has been in progress for over two months now, while evidence of typical 4th wave versus 2nd wave technical deterioration has been long in place, as noted here before. $NYA's lag, then, objectively confirms love, although widespread, is not running wild.
A rising tide might lift all boats, yet disparities that have been persisted off March '09 bottom remain firmly intact. Floundering ocean liners upon the sea furiously forestalled from their inevitable sinking no doubt are the rising tide's source and the market moves like everyone knows it. There positively is no more confidence now than three years ago that, smooth sailing for as far as the eye can see is increasingly likely. Although on the surface it does not seem all eyes are on the exit, yet if not on the heavens, then where else?
Elliott 4th wave versus 2nd wave technical deterioration is not yet in evidence per the NYSE Bullish Percent Index. So, completion of the NYSE Composite's 4th wave of 5 waves up from mid-November probably awaits another pullback. As you can see, the NYSE Composite's 4th wave so far has unfolded with an upward bias. At this point we might better expect this will continue.
* * * * *© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.
There's an easy way to boost your investment discipline...
Get Real-Time Trade Notification!