New 52-Week High and Low Statistics (07/31/10)

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 87% of the time-- a very positive trend. 

• In the past ten months, there have been only 279 new lows in the entire IGVSI universe, BUT the past four months have accounted for 82% of them.

• Only once in the past sixteen months have New 52-Week Lows exceeded New 52-Week Highs, proving (in spite of weakness in May & June) that we are still in a strong rally.

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 are at mature rally levels.. 

Remember who it was that told you to buy during May & June? Now, you should be doing less buying and some selling --- yeah, it's OK to go both ways.

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