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Don’t Rock The Boat – A Buy Signal Points to Near-Term Strength

[click on the arrow in the middle to view the Hues Corporation sing a Motown favorite]

Here’s a chart for my shorter-term trading friends:

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The breadth indicator that I follow just gave us a buy sign – this indicator is for a week or two ahead, so its basically saying that through Thanksgiving we should see a net positive change to the market. It is based upon the moving averages of the Advance/Decline line (the net of stocks moving up over moving down) so gives a feel for what should be happening with individual stocks as opposed to the market averages.

No indicator is perfect, but this one has a pretty good track record.

Don’t rock the boat, baby, the trend seems to have at least a couple more weeks left in it.

Mark