Saturday, July 3, 2010

Composite Bullish Percent Charts

These are some of my favorite charts, because they give you an overall view of the market, by sector.

I have put these as a permanent link on the upper left of Hawaii Trading.$BPDISC,$BPSTAP,$BPENER,$BPFINA,$BPHEAL,$BPINFO,$BPINDY,$BPMATE,$BPTELE|B[BREADTH]
There are 2 sets:

One is the bullish percent indices (BPI), and they are "mechanically" calculated based on the Point and Figure Charts.   They kind of do the same thing the Infamous Hawaii Trading Chart of Charts does...they analyze the charts themselves.

Moral of that story?   You can game some of the charts all of the time, you can game most of the charts some of the time, but HBB can't game all of the charts all of the time.   

The beauty of the BPI is that this can eb gathered so easy, just click on the link, it will update everyday for you.  DO not confuse BPI with sentiment polls or the like, BPI IS NOT an interview to see who is bullish, it is a simple analysis of the P&F charts.

Two is the Breadth Charts, maybe even more simple, these reflect the number of stocks going higher in price compared to the number of stocks going lower in price.  Many people refer to this as one of the "market internals" that seem so mysterious to causal "hobby stock players".

Don't be a hobby stock player, you will be eaten alive in these treacherous waters.   But if you can see which way the tide is flowing, and you have strength in your convictions enough to ride through the inevtiable shenanigans, market ramps, and the other hijinks that the financial ogliarchs, who move markets in concerted and one day to be found illegal manners, then you can simply make money be floating up or floating down.

Methinks the tide is going out, sinking all boats.

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