Monday , 6 December 2021

Present NYSE A/D Line Highs Has Historically & Consistently Preceded Stock Gains

For the first time in more than 90 days, the NYSE Cumulative Advance/Decline Line – A line that incorporates the breadth of all securities traded on the NYSE – is sitting at a record high and new highs in the NYSE A/D Line have consistently preceded stock gains since 1928. Over the next three months, there were no losses greater than -8.5% at any point for any signal. On average, drawdowns were limited to only -1.6%.

This post by Lorimer Wilson, Managing Editor of munKNEE.com, is an edited ([ ]) and abridged (…) version of an article by Jason Goepfert for the sake of clarity and length to ensure a fast and easy read.

NYSE advance decline line breaks out to new highs

Just because cumulative breadth measures like the Advance/Decline Line are sitting at new highs, however, it does not mean stocks can’t decline. They can; they can even crash. The biggest difference, though, is that those significant declines usually began a prolonged “everything” rally in the A/D Line. They rarely happened when the A/D Line was just breaking out to new highs.

A Few Last Words: 

  • Click the “Like” button at the top of the page if you found this article a worthwhile read as this will help us build a bigger audience.
  • Comment below if you want to share your opinion or perspective with other readers and possibly exchange views with them.
  • Register to receive our free Market Intelligence Report newsletter (sample here) in the top right hand corner of this page.
  • Join us on Facebook to be automatically advised of the latest articles posted and to comment on any of them.
 munKNEE.com has joined eResearch.com to provide you with individual company research articles and specific stock recommendations in addition to munKNEE’s more general informative articles on the economy, the markets, and gold, silver and cannabis investing.
Check out eResearch. If you like what you see then…

 

Leave a Reply

Your email address will not be published. Required fields are marked *