Thursday, August 27, 2009

Small Change in McClennan Oscillator Mean Big Change in Equities

The McClennan Oscillator moved only 3 points, that is definitely considered small. Maybe 20 would be medium, and 60 would be large.

Small changes occur before big moves in equity pricing, but the direction is unknown. The moves are often the next day, less often 2 days later, and sometime 3 days later.

This theory of a big move matches with all the wedges and triangles that are forming out there. A snake coiling for a big move. A big move up would demoralize all but the staunchest of bears, which would be the perfect "play" before a big move down.

The McC is a permanent link on the righthand side of my blog, along with other useful stuff. Check them out.

http://stockcharts.com/h-sc/ui?s=%24nymo

1 comment:

  1. Your site looking good... If you want more McClellan depth... take a look at Art Hill's ETF site. You may not remember him. He did a lot of stockcharts.com tutorials. Feel free to use it, I do... great for comparison, McC breakouts, Summation.
    A lot of good stuff for the McClellan inclined http://www.etfinvestmentoutlook.com/

    cheers, rhae an eveil rat

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Insightful and Useful Comment!