New 52-Week High and Low Statistics (06/30/10)

Another useful tool for analyzing an index that only includes your kind of equities is a comparison between the number of issues establishing new 52-week high ground and the number sinking to new 52-week lows. Superficial analysis is very straight forward--- there should be more new highs in an upward trending market and more new lows during a correction. 

• During the past twelve months, days with more new highs have exceeded days with more new lows 89% of the time-- a very positive trend. 

• In the past ten months, there have been only 220 new lows in the entire IGVSI universe, BUT the past four months have accounted for 82% of them.

• For the first time in fifteen months, New 52-Week Lows exceeded New 52-Week Highs, signaling the natural (and anticipated) change from rally to correction.

The New High and New Low issues themselves can identify weaker and/or stronger sectors within the Investment Grade Value Stock selection universe--- very important in helping investors determine where the bargains are and where the profit taking opportunities should be. Clearly, new high vs. new low statistics were at mature rally levels through March/April ---  the best string of stats in this area in more than two years. 

Remember who it was that told you to take your profits? Now I'm telling you to BUY!

What does all this mean? See the Investment Grade Value Stock Expectation Analyzer.