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Could VOLD have kept you out of going long on Thursday May 23 with all the NVDA hype? Yes! It never got above the zero line. Even when NVDA was rallying 11% and others were green in sympathy.

Everything below was from the April 22 session. While some of you do not watch the markets daily, it should still serve as a reminder why Breadth studies work in all time frames and is why I start the podcast everyday with New Highs vs New Lows.

Breadth

Wall Street cannot hide their true intent if you know how to watch breadth.

10:17am

73% of stocks under 50 day ma. A lil better than Fri 75%. But this bounce is very blah. But its only 10:20am

Giles D- Would you mind explaining the $VOLD chart please and how that relates to what we're seeing and potentially going to see. Thanks

Ticker VOLD is the vol up or vol down for adv dec shares across the NYSE, or about 8k securities.

It shows the volume of the advancing stocks versus the volume of the declining stocks

VOLD Ratio is calculated by the net volume of a buying candle, divided by the net volume of a sell candle.

ADD is the delta of net tickerd advancing vs declining. Volume is not taken into account.

To me both are barometric readings. Or lie detector machines.

How can big money hide their intent over days and mask volume. Sure options and dark pools. But they cannot hide forever.

If the dow is up 100 and I see vold not agreeing going south all session or sub par volume up while indices rallying, this tells me high risk of reversal.

A few moments later

“Look at that. Right on time.”

12 noon - a little better

But 63 new highs and 211 new lows

1:15pm improving

69 new highs vs 222 new lows

2pm

Look at the VOLD ramping, confirming the bounce. It is like a confirmation tool aka lie detector machine.

Some traders trade the divergences. I do NOT. Intraday VOLD can turn on a dime! Someone calls Jerome Powell or Jamie Dimon and bam!

How some trade as an example:

* When the price of SPY is going up while $VOLD is heading lower, we have a bearish divergence = short

* When the price of SPY is going down while $VOLD is heading higher, we have a bullish divergence = long

*Intraday signals of any kind are more prone to giving signals that only last intraday. Makes sense right? like a 5 min chart and you are watching rsi, stoch, macd, balance areas etc.

Here are my breadth weapons of choice and applications:

* The Forest: McClellen Summation index (big trend changes, what season is it?)

* Hillside: study daily new highs vs new lows (weather forecast)

* Trees: VOLD and ADD

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Free Lesson $VOLD and Breadth #209 11:20 Share

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Free Lesson $VOLD and Breadth #209