I never made a stock transaction without first consulting volume indicators.
Most of the time they are in sync with the underlying security. The stock
goes up, the indicator is up. I really take notice whenever divergences
take place. Right now I see very positive divergences in the DJ-30 and the
OEX. We had a positive divergence in the NDX, but yesterday's huge rise in
the NASDAQ brought the stock more in line with the volume indicator.
With you fellows being such a tough crowd one hates to make predictions of
any sort, BUT it looks like the big cap guys (DJIA & SP-100) are going to
take off.
Attached are charts of OEX, NDX, & DJ-30 with volume indicators. By the way
the volume indicators are cumulative weighted totals of the 75 top cap
stocks in the OEX & NDX (cap weighted) and the 30 stocks that makes up the
DJ-30 (price weighted).
Pete
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