SpikeTrade.com is a moderated blog.
To post a message, please send it to Spikeblog@spiketrade.com
You may add a comment to any previous post in the blog whenever you like.
Thank you for being an active SpikeTrader!

Saturday, December 20, 2008

NH-NL Brazil 12/19/2008

We consider New High - New Low to be the best leading indicator of the stock market. This is why we update it every day on the Members' page of SpikeTrade.com

We congratulate Vladimir B, a Guest member from Brazil for having created NH-NL for his country. It was a lot of work! Vladimir is planning to updated the Brazil chart every week, and we will post it here. Enjoy!

you can enlarge this chart by clicking on it

The weekly chart shows a vicious downspike - a sign of panic liquidation. It is a sign of a bottom - only stock markets rarely reverse in a V-formation, we may get a retest of the lows.



The daily chart shows NH-NL at zero - bears have faded away. We need to see an expansion of new highs to confirm that the upmove 'has legs'.


We'll look at these charts again next weekend

Happy holidays!

Alex Elder

2 comments:

  1. Vladimir - very nice job! It would be interesting to hear your impression of the Brazilian economy.

    ReplyDelete
  2. This article from Reuters shows well an impression of the Brazilian economy.

    http://www.reuters.com/article/marketsNews/idUSN1335469720081113

    From the article date till now, I can add that the optimism has increased in the last month.

    Accordingly, Christmas sales seem to happen very well here. This weekend all malls are crowded like in a usual year. We must see detailed results next week.

    This might mean that we have space to more bearish behavior in the future. This analysis from now, though, is in better hands with your already experienced investor’s feelings.

    ReplyDelete