Charlie Morris is due in later today to talk me through his momentum screen. Late last week, Charlie showed me a proprietary indicator that was red. All of it. Red.
Specifically, there wasn’t a single stockmarket in the world that showed positive breadth. In every single market on Charlie’s screen, more stocks were falling than rising. And in most markets, measures of short-term volatility (30-days) were higher than average volatility (over three months).
For an experienced analyst like Charlie, it was a sign that stock prices would go a lot lower before going any higher. That’s what happened yesterday. Most indices in America fell and breadth was awful. There was only one exception on the Dow Industrials yesterday, for example.
Charlie’s research allows him to drill down within each market and look at individual stocks to see who’s leading the trend and whose bucking it. We’re going to turn the camera on him as he walks me through the screen later today. Hopefully, I’ll have that for you tomorrow.
Category: Market updates