The exchange-traded fund that tracks the Dow Jones Industrial Average (DIA) has done a stunning one-day whipsaw on very narrow price movements.
In my analysis yesteday, I wrote: "Indeed, 'suspect', I suspect, is too mild a term. The entire configuration screams, 'Say wha'?!?!?!?'"
And so it proved to be.
The psar, which went bear on Wednesday, is now back to bull mode, and the sto has again re-entered overbought territory.
DIA will be removed from the Watchlist with a note of shame entered into its permanent record.
It makes you wonder, though, why the stock market index most quoted by the news media is the least technically sophisticated and with the narrowest coverage of stock issues.
The only thing to recommend it is tradition, something the newspapers and broadcast outlets are very fond of preserving, to the detriment of their business.
Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic
No comments:
Post a Comment