Ian Woodward's Investing Blog

Stock Market: High Road to Climax Run

I have been very busy this past week, but felt I must raise a Flag after all the Blog Notes that got us to this point. We are at a critical juncture and this is probably the start of a Climax Run:

Sherlock Picture

You folks know the go to charts at a time like this.  So, let’s not waste any time and you judge for yourself:

Sherlock Pat2

Notice that when %B hits the top bucket, i.e., >1.0, it doesn’t stay up there for more than a few days.  The next chart shows we have had a long run above 0.5 for nearly a month, and that the Index is now Overbought:

Sherlock Pat1

Do Not anticipate the potential correction, but time is running out after today’s strong move up.

Best Regards,


2 Responses to “Stock Market: High Road to Climax Run”

  1. Paul R Says:


    What does the column %B-%0.5 in your last chart represent?

    Paul R

  2. ian Says:

    Oh Paul…you crafty fellow, you miss nothing! We need to do work on that column, but it generally means to me that when the number is big the Leading stocks with %B above 0.5 are lagging %B itself and that is usually not a good sign. It implies that the Index is about to fall of its own weight when the numbers are big in that column…i.e., we are overbought. It also suggests that in the next few days %B >0.5 had better rise or for sure we are due for a fall. Hope my logic makes sense.

    All of that is an excuse to say I better dig deeper and plot a few graphs to see if I can find a True Winky, Winky. Hopefully we will have an answer in four weeks at the seminar.

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