Market Outlook 15-Jan-2023
Tools for Identifying Breadth, Breakaway Momentum, & Capitulation
Dear Investors,
Today I am thrilled to introduce several new ways to look at extreme price action. As a student of the markets and a market participant for many years, I have come to appreciate the value of tools that can give me an edge in identifying opportunities.
The first indicator I will highlight is the 5-day Price Thrust/Capitulation Tracker. This indicator measures the five-day price thrusts and capitulations of the analyzed stock. It can help identify local and major bottoms on the capitulation side and early entry areas before a significant market rally begins.
One of the indicators that I am particularly excited about highlighting is the Breakaway & Capitulation Momentum tracker. This indicator is designed to identify when the market is showing signs of a potential breakaway move before it happens. By using this indicator, I will be able to identify critical areas to enter the market and make more informed investment decisions.
Finally, I’ll highlight the NYSE Advance/Decline Thrust & Capitulation indicator, which similarly scans for periods of extraordinary strength and capitulations.
When used alone or in conjunction, these indicators have proven to be highly effective in identifying strong market conditions, breakaway momentum, and critical capitulation areas. As I will show below, these indicators have consistently provided reliable signals for making informed investment decisions.
All of these are similar to the Zweig Breadth Thrust (ZBT), but each with its twist, and while they are all rare, they offer more signals than the ZBT.
I am going over these signals today because two of the three triggered a bullish signal on Thursday, Jan 12th.
I hope that you find this Outlook informative and valuable.
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