coolhat- as I
showed in Mid Sept, sector rotation had already begun to Consumer
Staples, Healthcare, and Utilities somewhat, those
are defensive sectors - money rotates into those when it
fears a market pullback. Likewise some money rotated out of
riskier sectors like technology, energy, finanical
I don't like to trade the McClellan personally but use it as
sentiment. Maybe on really strong spikes but otherwise I will
use something else or had a bias that the McClellan just
intensifies. Otherwise being overbought does create
cautionbut sometimes a small decline in the market
provides a decent pull back in the Osc and it essentially
recycles.
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McClellan Oscillator
Posted by coolhat on 2nd of Oct 2012 at 02:03 pm
Hi Matt/Steve,
If McClellan Oscillator is overbought does it mean that Market is topping out?
Will there be a rotation to underperfoming stock s versus those that outperfomed?
Thanks,
Coolhat
coolhat- as I showed in Mid
Posted by matt on 2nd of Oct 2012 at 03:21 pm
coolhat- as I showed in Mid Sept, sector rotation had already begun to Consumer Staples, Healthcare, and Utilities somewhat, those are defensive sectors - money rotates into those when it fears a market pullback. Likewise some money rotated out of riskier sectors like technology, energy, finanical
I don't like to trade
Posted by tom on 2nd of Oct 2012 at 02:07 pm
I don't like to trade the McClellan personally but use it as sentiment. Maybe on really strong spikes but otherwise I will use something else or had a bias that the McClellan just intensifies. Otherwise being overbought does create cautionbut sometimes a small decline in the market provides a decent pull back in the Osc and it essentially recycles.