ARTICLE SYNOPSIS ...INDICATORS New Highs And New Lows The number of new highs and new lows is a classic stock market indicator, and here are ways that this market statistic can be modified to build a number of market indicators. By Tim Hayes, CMT Market breadth and the health of the broad market as a whole can be measured in many ways. You can use advance/decline lines and other indicators based on the number of advancing and declining stocks. You can use indicators based on advancing and declining volume. And you can use the number of stocks reaching new highs and new lows. All are very useful, but let's foc...
ARTICLE SYNOPSIS ...Bonds Vs. Stocks: A Historical View by Tom Hayes Relative value is a familiar buzzword when it comes to comparing bonds and stocks. But is it accurate? There are criteria that must be specified for comparisons, as Tim Hayes of Ned Davis Research Inc. points out; for one, the time periods the comparisons are drawn from. So what's a better value, stocks or bonds? This common question is often answered by comparing relative yields. When bond yields are high relative to stock yields, they can be expected to eventually drop back toward a more normal level relative to the stock yields. Thus, bonds...
ARTICLE SYNOPSIS ...The Coppock Guide by Tim Hayes One of the best megaphones of market action is the Coppock guide, a long-term price momentum indicator that effectively filters out short-term and intermediate-term market swings to issue a clear message on the market's underlying long-term trend. Tim Hayes of Ned Davis Research reports on the success of this indicator. The Coppock guide, which was developed in the early 1960s by technician E.S.C. Coppock, was designed as a guide by which to identify major market bottoms, with the specification that buy signals would be generated when the 10-month smoothing dro...
ARTICLE SYNOPSIS ...Leading Indices At Bull Market Peaks by Tim Hayes So which indices do you think most reliably lead the market? To find out, STOCKS & COMMODITIES contributor Tim Hayes, who was also interviewed in the August 1991 issue, examined 14 indicators for their market forecasting ability, beginning early in the 20th century. The indicators that he studied ranged far in variety and included the categories of economics, market breadth and interest rates. Of the 14, two were judged to have performed the best in leading the market within these categories. What were they? Keep reading. Confirmation and div...
ARTICLE SYNOPSIS ...Ranking The Currency Markets by Tim Hayes The very idea of trading the currency markets can make the most seasoned traders shudder a little, but in truth, doing so could be lucrative when combined with a solid technical system. You can rank currencies by averaging the percentage rate of change over various periods. Combining the ranking table with your timing models will help with market timing, too. Tim Hayes, of Ned Davis Research, can fill you in on ranking the currency markets. When currency markets come to mind, the risk-averse investor might cringe at the thought of wild short-term swi...