Thanks for reading. Too many people on the boards just wave away any conversation on market indicators without ever actually checking, based on a quick sound bite or article they once heard.
They are completely correct that technical analysis can not be some magic panacea for buying and selling your way to riches, and they are completely Incorrect that there isn't SOME value to be gained from parts of this.
The other blog posts here cover the Zweig breadth indicator, the Equity Put Call Ratio &cpce, Nasdaq high-low ratio $nahlr , seasonal market sentiment and one stock price indicator called the full stochastic.
There is only one purpose to what I post here: it doesn't say WHAT to buy or when to SELL. It only helps you see when there has been a serious selloff down to known, repeating low levels that you can check for yourself have been useful in the past. And the data is free and public so that you can check for yourself.
There are those posters who claim that past knowledge is of no use in predicting the future, yet everyday they ride in planes, elevators, cars and live in buildings whose engineered structure and operation is entirely designed on past knowledge of what worked?.
This is free and public stuff and I supply links how to check for yourself. If you can buy a better price on quality stocks gleaned from the fine articles here at SA, why not ?
Every stock I bought before digging into this would have been bought "better" (lower price) is I had waited for one of these indicators....its that simple.
Its not magic or voodoo, and you can actually check it for yourself, looking at past lows in the indicators, then look at how you'd have done with one of your watchlist stocks.
My preferred situation is when the Zweig ratio is below .375 at the same time the $nahlr is below .01. It would be nice if the stochastic of a watchlist stock itself was at zero but not required; because this situation is indicative of a strong market selloff (good time to buy low).
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: I use these indicators and have spent much time checking into their past data