Remember when you were a kid and played "follow the leader"? The leader would
jump, run, and often do body contortions that you were supposed to repeat or
get knocked out of the game.
The stock market also plays "follow the leader". In today's chart, we will
show you our current Leadership Index Ratio. It measures how far Leader stocks are
ahead of the Broad market stocks.
A positive Leadership stock ratio means that the "leaders" are out in front
of the pack, and the followers are right behind them. A positive Leadership
Ratio means that these stocks are leading the market upward in a rally.
When the Leadership Ratio goes negative, then the Leaders retreat from the
game and the followers (Broad market stocks) also quit and leave the game.
When this happens, stocks start down trending and pull back.
Check the chart below to see how the market rallies when the Leadership Stock
Ratio is high and strong. Also note how the market pulls back when the Leaders
retreat into negative territory.
(The Leadership Stock Ratio is just one of the market gauges that we post
every day on our paid subscriber sites.)
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.
StockTiming.com is dedicated to
Stock Market Investors who want the best information on stock charts, stock
market trends, stock market timing and technical analysis.
Be My Guest and Take Advantage of Our Free Membership ... Get a Free
Membership to StockTiming.com ... Youll receive important daily messages before
the market opens and direct links to todays important web pages. Information
and messages that are often not posted on our website. There is no obligation
or expectation on our part ... it is just our way of proving our accuracy and
timing expertise to you. Please click here for your Free
Membership.
Circle Us