Friday, May 29, 2009

When Participation is Weak During a Market Rise


Although the S&P 500 e-mini index (ES) moved above its open around 9:20 CT, a solid majority of the ES stocks in my basket (five highly weighted issues for each of eight sectors) were trading below their open, as noted in the intraday Twitter comments. That suggested that only a minority of stocks and sectors were contributing to the strength. Fading such moves is often the best short-term strategy, as the lack of participation generally fails to bring fresh buying into the market.
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2 comments:

meques said...

i noticed already here that you do not pay attention on XLU. why?

Marc said...

Brett,

What do you think about the end of day action this last day of May?

Cheers