{"id":11882,"date":"2015-09-05T11:18:55","date_gmt":"2015-09-05T16:18:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11882"},"modified":"2015-09-05T11:18:55","modified_gmt":"2015-09-05T16:18:55","slug":"internal-combustion-anatomy-of-a-market-top-part-1","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11882","title":{"rendered":"Internal Combustion: Anatomy Of A Market Top-Part 1"},"content":{"rendered":"

Internal Combustion: Anatomy Of A Market Top-Part 1<\/a><\/h3>\n
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Over the past few months, we have detailed the systematic deterioration in the internals of the stock market. This trend recently reached depths historically seen only near major market tops.<\/i><\/strong><\/p>\n

This is Part 1 of a 1 or 2-Part series on factors that are characteristic of a cyclical top in the stock market. It should really be a 3-Part series but, like Star Wars, we skipped over the 1st part of the story. Part 1A would have covered what we term the \u201cbackground\u201d conditions of the market. These background conditions \u2013 including valuation, sentiment, stock allocation, long-term price vs. trend, etc. \u2013 convey the general market environment that exists. These conditions are not catalysts or actionable indicators. Rather they reflect the market\u2019s backdrop, instructing us as to which cyclical trends are likely to develop, at some point. Now, the status of these background conditions can persist \u2013 and for a long time. Indeed, we have been discussing the overbought\/extended\/high-risk nature of various of these indicators for years already. So, in a way we have covered the true Part 1 of this \u201cMarket Top\u201d series, just not in a formal sense (our\u00a0October 2013<\/a>\u00a0Newsletter may have been the closest to an actual \u201cPart 1\u201d).<\/p>\n

This piece covers the \u201cinternals\u201d of the stock market. Internals (or breadth) refer to the level of participation among stocks throughout the entire equity market. It includes metrics like the number of stocks that are advancing versus declining, the amount of volume in advancing stocks versus declining stocks, the number of stocks that are making new 52-week highs versus new lows, etc. In our view, strong internals, i.e., widespread participation among stocks, is an important ingredient of a healthy market.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Internal Combustion: Anatomy Of A Market Top-Part 1 Over the past few months, we have detailed the systematic deterioration in the internals of the stock market. This trend recently reached depths historically seen only near major market tops. This is Part 1 of a 1 or 2-Part series on factors that are characteristic of a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[8723,274,8724,690,1138],"class_list":["post-11882","post","type-post","status-publish","format-standard","hentry","category-economics","tag-dana-lyons","tag-equity-market","tag-equity-market-collapse","tag-risk","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11882"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11882\/revisions"}],"predecessor-version":[{"id":11883,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11882\/revisions\/11883"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}