Posts Tagged ‘new highs’

Hypselotimophobia – The Fear of High Prices

Hypselotimophobia – The Fear of High Prices


Courtesy of Joshua M Brown, The Reformed Broker 

Hypselotimophobia (from the Greek, is an anxiety or extreme fear or hatred of high prices)

If you are uncomfortable buying or trading stocks that are at new highs, this is not your tape.

There are only two categories of investors who are unfazed by the deluge of new 52 week highs – the nimble and the desperate.

The nimble are in a position to act quickly should things change.  With every tick, they are tossing blades of grass into the wind to gauge direction in real-time.  If you run a machine shop or have a waiting room full of patients, this is not feasible.

The desperate are most likely professional runners of money, those without the luxury of waiting for their pitch.  They must get more stocks on the books to show that they "didn’t miss it" and they must do so regardless of the top-tick risk.  An ill-timed buy today can quickly be described as an "intermediate-term" pick to the investment committee if need be, but a swollen cash position in a vortex of up stocks cannot be explained at all.

There’s a bumper crop of gaps and breakouts, hundreds of 52 week highs daily – so why isn’t everybody happy?

Most market participants are not incredibly nimble nor are they under career pressure to buy at any price.  The drumbeat of daily new highs can be more frustrating than fun for them.

Unless you’re in the habit of buying new highs, the ascent of this market has been way less enjoyable over the last 6 weeks than the headlines would lead outsiders to believe.

If you are a a hypselotimophobe, there isn’t much for you to do at this juncture, so maybe you want to just chill out. 


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Doug Kass and Jim Cramer Need to Change the False Ads for Real Money

Doug Kass and Jim Cramer Need to Change the False Ads for Real Money

Courtesy of Damien Hoffman at Wall St. Cheat Sheet

As if didn’t already have enough troubles with the SEC investigating their accounting, another Street veteran Doug Kass joins the pile fools who have tried to make prophetic claims regarding the stock market. (Nouriel Roubini is still my favorite.)

On August 26, 2009, Kass authoritatively proclaimed, “Markets top during times of enthusiasm. I believe that the markets are now overshooting to the upside and that the U.S. stock market has likely peaked for the year.”

On September 30, 2009, 

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The 52 Week Lookback Period and New Highs – New Lows

Bill Luby’s cautions that new highs are relative, and the ones occurring now are being compared back to when the market was in free fall last October. – Ilene 

The 52 Week Lookback Period and New Highs – New Lows

free fallCourtesy of Bill Luby at VIX and More

Market breadth is a great tool. It can be used to evaluate momentum and also as a contrarian indicator to help identify potential market reversals. Various breadth indicators range from simple advance-decline indicators like the McClellan Summation Index, to measures of new highs and new lows, and beyond.

As I have seen a fair amount of comments related to new 52 week highs and lows in recent weeks, I wanted to point out what I hope is obvious to everyone looking at these charts. First, in many respects that 52 week time frame is an arbitrary lookback period. One could easily use a lookback period of 3 months, 6 months, 2009 year-to-date, 2 years or whatever. As it happens, 52 weeks is the conventional lookback period that is baked into almost all of the new high and new low data.

I mention all this because from October 1, 2008 to October 10, 2008 the SPX was in a free fall and dropped from 1167 to 839. As a result, a large number of stocks are making 52 week highs right now only because the lookback period no longer captures the values prior to the free fall.

So…keep a close eye on market breadth, but be wary of an artificial jump in new highs that shows new highs surging since the beginning of October. For the most part, this is a function of an arbitrary lookback period. Said another way, if you are going to be a student of technical analysis, but sure to study not just the recent data, but also the data that is scrolling off of the radar.

[graphic: StockCharts]


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NASDAQ Hits New High for the Year

NASDAQ Hits New High for the Year

Courtesy of Corey at Afraid to Trade

I almost let this bit of news slip me by!  The NASDAQ Index crested above its June high today, creating a fresh new high for 2009.  As strength in the Technology Index can foreshadow strength in the broader market, this is definitely worth a second look.

chart of the nasdaq composite

Without going into too much detail, I mainly wanted to highlight the pop to new highs that took place today.

There was resistance about the 1,850 level but buyers seemed to have no trouble at this level… so far.

Volume is not running at a significantly high level (it’s actually beneath the 50-day average) so buyers would like to see higher volume to confirm the move better.

As long as we’re at new highs, whatever your bias is, buyers are in control.

Corey Rosenbloom, CMT


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Phil's Favorites

Why Trump will weather Stormy


Why Trump will weather Stormy

Courtesy of Monika L. McDermott, Fordham University

Donald Trump’s opponents have long been waiting for some sort of scandal to bring him down, and they may think they have finally found it in pornographic film star Stormy Daniels.

Daniels alleges she had an extramarital affair with Donald Trump in 2006 and was subsequently paid off by a Trump lawyer to stay silent during the presidential election. These types of charges, if proven true, have felled many politicians in the past.

But Trump’s opponents probably shouldn’t get their hopes up.

While political science research has shown that politicians are generally hurt by political scandals like extramarital affairs, the context is key. ...

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Zero Hedge

Trader Shares "A Few Ideas For Avoiding A Friday Faceplant"

Courtesy of ZeroHedge. View original post here.

From Bloomberg macro commentator, Richard Breslow

Don’t mistake this as a trade recommendation, but it is all right to do nothing. Trading when you believe you have an edge is when it is time to step in. If you are there, then go for it. But trading merely because things are moving around is a day-trading concept, not an investment thesis.

It’s important to match trading style, objectives and realistic liquidity assumptions to how you view volatility vs risk. They are very much not the same thing. Made even more so if you think the Fed equity put has been eliminated. It hasn&#...

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Insider Scoop

41 Biggest Movers From Yesterday

Courtesy of Benzinga.

  • Odyssey Marine Exploration, Inc. (NASDAQ: OMEX) shares climbed 118.42 percent to close at $8.30 on Thursday after the company disclosed positive Mexico Court Decision nullifying a previous denial of application for Don Diego project.
  • Omeros Corporation (NASDAQ: OMER) shares gained 35.31 percent to close at $15.75. The maker of a cataract surgery drug called Omidria realized a "big win" from Wednesday's release of the U.S. government spending bill, according to Stat News. Specifically, a policy included in the spending bill includes a pass-through exte... more from Insider

Chart School

Bitcoin Cycles Review

Courtesy of Read the Ticker. uses Bartel's logic to find dominant cycles in a time series.

Cycles are present in markets, as shown below the 22 and 40 day cycles on calendar days looks like the best fit. Therefore the chart below suggest we can expect a bitcoin low either now or in a few weeks.

Bitcoin has not been effected by the SP500/Dow sell off which is a very bullish sign, bitcoin may see safe haven money chasing price very soon, add to this the sister coin, litecoin, isgetting ready for wider use with the massive e-commerce payment market (litepay, litepal, atomic swamps, lightening network).

The bitcoin move is not over!


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U.S. Commerce Secretary Wilbur Ross Speaks With CNBC's "Power Lunch" Today

By VW Staff. Originally published at ValueWalk.

WHEN: Today, Thursday, March 22, 2018

WHERE: CNBC’s “Power Lunch”

Following is the unofficial transcript of a FIRST ON CNBC interview with U.S. Commerce Secretary Wilbur Ross on CNBC’s “Power Lunch” (M-F 1PM – 3PM) today, Thursday, March 22nd. Following are links to video from the interview on

]]> Get The Timeless Reading eBook in PDF

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Digital Currencies

Why accountants of the future will need to speak blockchain and cryptocurrency if they want your money


Why accountants of the future will need to speak blockchain and cryptocurrency if they want your money


Courtesy of Anwar Halari, The Open University

If you haven’t already heard of Bitcoin, you either haven’t been paying attention or you’re a time traveller who just touched down in 2018. Because by now, most of us will have heard of Bitcoin and some of us have even jumped on the bandwagon, investing in cryptocurrencies.

But despite its popularity, many people still don’t understand the technology that underlines it: blockchain. In...

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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)


"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...

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How your brain is wired to just say 'yes' to opioids

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.


How your brain is wired to just say ‘yes’ to opioids

A Philadelphia man, who struggles with opioid addiction, in 2017. AP Photo/Matt Rourke

Courtesy of Paul R. Sanberg, University of South Florida and Samantha Portis, University of South Florida


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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...

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Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.


This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...

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NewsWare: Watch Today's Webinar!


We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...

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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.


EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...

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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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