A Silver Miner Breaking Out Of A Huge Base

It has taken me years to unlearn everything I was taught, and I probably haven’t succeeded yet. I cite this only because most of what has been written about the market tells you the way it ought to be, and the successful investors I know do not hold to the way it ought to be, they simply go with what is. ~ Adam Smith, “The Money Game”

Good morning!

In this week’s Dirty Dozen [CHART PACK] we look at triggering breadth thrusts, a bullish small-cap anomaly, investor portfolio preferences, and why it’s bullish for stocks. We then go through some ratio charts, plummeting nat-gas production, a bullish silver miner breakout, and an EM ETF that looks ready to the moon, plus more…

Let’s dive in.

***click charts to enlarge***

  1. The evidence for the bull case continues to build… @WillieDelwiche wrote the following on the below NDR chart “It looks like we can add to the list of improving conditions a new round of breadth thrusts. Over the past 10-days, advancers have outpaced decliners by 2 to 1 (above 1.9 is a breadth thrust) and 89.6% of stocks are above their 10-day averages (90% is the threshold for a breadth thrust). Getting the percentage of stocks above their 50-day average above 90% (currently 67%) would also be a breadth thrust. Historically, breadth thrusts provide a bullish tailwind for equities that can last for up-to a year.”

  1. Small-caps are seeing incredible buying pressure as well with a 10%+ rally in under 2-weeks. SentimenTrader points out that “this kind of rebound typically happens after severe weakness, either on a relative or absolute basis. Either way, there have been only 20 distinct times over the past 40 years when the index shot higher by at least 10% over a 10-day stretch.”

  1. Below is the return dispersion following every other instance over the last 40-years, again via SentimenTrader. It has a strong record as a very bullish signal. And perhaps most remarkable is that the market ran higher over the following month 100% of the time, with a median return of 5.9%.
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Disclaimer: All statements are solely opinions and are for educational purposes only.

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