Market Breadth Analysis with Blocks Trader

This is nowhere near to being a complete picture of the market's breadth situation, but I finally got around to setting up a template for my Blocks Trader (which is the 3.0 version that just came out of BETA and into full-release) which I use in conjunction with my TeleChart platform. Blocks Integrates well with TeleChart and makes analysis very easy and provides the ability to look at information in almost any combination of ideas you can imagine-very powerful. As always, when I plug these two products, I make clear that #1 I've been a TeleChart user for somewhere in the neighborhood of 9 years or so. Blocks I've been using since it came out a few years back. #2, the only way I derive any income from this blog, other than the occasional donation to the tip jar (which is located above the Tagboard on the right side of the blog in case you were searching for it), is via my affiliation with TeleChart/Blocks. If you use a link from my site to visit them for the first time, they'll credit me a small commission for sending you over, it doesn't cost you 1 penny more-comes right out of their pockets and into mine. So, if you want to sign up for a FREE 30-DAY TEST DRIVE of TeleChart Gold service, just click the link and kick the tires for a month. TeleChart has been voted "Best Software Under $500" by the Readers of "Stocks and Commodities" magazine-get this-voted best in their category there, EVERY YEAR SINCE 1993! Also voted "Best End of Day Stock Data 2008" and voted "Best Trading Centers, Schools or Training-2008", both also from the Readers of Stocks and Commodities Magazine.

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Now that they biz stuff is out of the way, here's a picture of my platform I put together on Blocks with the sole intention of identifying changes in the market's breadth. I combine these findings with my 3C and other indicators to make decisions on how to position my portfolio. This particular template has 6 different layouts, you can see them labeled Breadth #1, Breadth #2 and so on-to 6. Some are tabbed behind others-1 click brings them up. You can also see I have a tab for news which loads the most current news for each stock I view. As I change symbols, the news for the new symbol loads automatically-no more wasted time in going to a web-page and typing symbols each time you change them. I also have a fundamental data sheet tabbed close to the watch list on the left and below, in the lower-left side, I have my real-time Bloomberg TV streaming. There are other choices for the real time TV, including CNBC.



Next I have my 1st template which included a simple Candlestick chart of the Nasdaq via the Q's (QQQQ). In yellow, just below is an Advance/Decline Ratio for the Nasdaq 100 Component stocks (actually all these are looking at the Nasdaq 100 Component Stocks on a 15-min intraday chart). This indicator clearly shows a negative divergence toward the top on 4/7. Below that, an Advance/Decline line-again, note the negative divergence.




Next, in Green, is the Percentage of Stocks (in the Nasdaq 100) Above Their 50 bar Moving Average and then there is a moving average of the total applied to that. In Red, just the opposite-Percentage of Stocks Below Their 50-bar Moving Average and then a 50-bar moving average applied to that total. Again, a great representation of the breadth problems I've noted in previous posts this week and last week.



Next, in Green, I have a "Count New Highs" over the last 250 bars and in Red a "Count New Lows" over the same 250-bar period. Again, another indication of a reversal on the intraday chart.



And now, the middle window contains the "Intraday Momentum Index" and below that, a really cool "Rally Breadth Index". The last one is very visual, much more than is apparent in this slice in time.





And Finally, in the middle window I have Dr. Alexander Elder's "Force Index" and below that a McClellan Oscillator /Summation Index. As you can see, every one of these indicators signalled a change in trend was at hand-at least intraday as these are all 15-bar/15-minute charts. Compare the findings here with my 3C (orange indicator) Indicator in the previous post below-THAT'S CONFIRMATION!



I'll be taking a closer look at the broader market's breadth probably tonight, so check back and please, if you give TeleChart or Blocks Trader a try, please use our links or mention Trade Guild.net-Thanks so much.