Tuesday, February 05, 2008

I'm Buying Here

One of the reasons why I put together the Combo MACD indicator was so I could compare individual stocks and to quickly judge the strength of each. It also allows me gauge the overall strength of the market by calculating how many stocks are weak or strong.

Below I show the S&P 500 and Nasdaq 100 and their corresponding Combo MACD, which I'm not too interested in. What I show at the bottom are the percentages of stocks in those indexes that are either above the value of 2, which I consider strong (green), and the percentage of stocks that are below 0, which I consider weak (red). What I find interesting is that we seem to be an extreme level of weakness right now. As you can see, we are at levels not seen since the market lows of 2002.

While I see no individual stocks to buy right now, I am picking up some ETFs on this weakness.

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