Have the Leadership Stocks Gone South?

By: Marty Chenard | Mon, Jun 13, 2011
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Every night we run our computers to measure how Leadership stocks are growing or declining in numbers, and then compare that to what is happening to the Broad Market stock number.

Our historical data has found that the Broad Market follows what is happening to the Leadership stocks. They are aptly named, because they are the "lead dogs" that the rest of the market follows.

Today's chart is presented as a courtesy to our free members and won't be shown again here until next month.

The chart below shows the number of Leadership stocks to Broad Market stocks since May of 2010. The Leadership stocks are represented by the red line, and the Broad Market stocks are represented by the blue line.

Since the Leadership stock trend defines the direction for the market, you would expect it to "lead" any new directions ahead of the Broad Market stocks. And that is what happens. So this morning, focus on the red line and how far ahead it is of the blue line ... as well as the direction.


What do you see?

1. The Leadership stocks (red line), is negative and well below the blue line (Broad Market stocks). In fact, the Leaders went negative at the beginning of June, indicating that the Leaders were in retreat and that the Broad Market would follow. Hopefully, you had some kind of warning that this was going to happen. (We issued a Special Report to paid Subscribers on May 16th, indicating that a market turn was about to happen and had our subscribers go to cash at that time.) FYI ... Today's chart is posted every day on Section 4, Chart 1 of the paid subscriber site.

number of Leadership stocks to Broad Market stocks since May of 2010

 


 

Marty Chenard

Author: Marty Chenard

Marty Chenard
StockTiming.com
Asheville, NC 28805
Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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