The market is always transparent. It prints everything that has occurred and it is up to the traders to extract and interpret what the market was saying. There are times the market will present information that is obvious, and it will use that information to deceive the participants.
An example of this is the recent new all time closing high recorded by the DJIA on 5/19/2015. If one inspects all the 30 stocks in the Dow Jones Industrial index, one would have noticed almost 80% of the stocks are in decline and they are much below their 52 week high. If one just monitors the market by looking at the typical price patterns, moving averages and various indicators, then one would have been deceived into believe the market is doing fine.
The serious market watchers know that the market is comprised of stocks. In order to gauge the strength of the market properly, one needs to know what is the majority of the stocks are doing, not what the index is displaying. Be aware that every trend change is started by a turn from the prevailing trend not by an abrupt change from up to down. Most market participants will miss the turning point because they are focusing and waiting for the obvious.
One needs to watch the breadth in order to see what the market is actually doing. Always be paranoid and be defensive. More importantly, one should ‘BE PREPARED’, and never anticipate or predict what the market might do because there is infallible indicator, and anything can happen!
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