https://stockcharts.com/h-sc/ui?c=$namo,uu[w,a]daoanyay[dc][pf][vc60] On Friday Nasdaq was down 137 points yet NAMO was up. I have never seen this before. I am trying to figure out what this means. My best guess is it means complacency and there will be much more down days ahead. What do you think?
I think you don't understand how the McLellan Oscillator is calculated, and the difference between a market-cap-weighted index and the how advancing and declining issues are (mostly) equal weight. Don't guess on what it means - backtest to see if your guess has any edge.
What to backtest? LOL. I have 30 years trading experience and I check NAMO everyday.It is always on a big up day NAMO is up and big down day NAMO is down. I said I have never seen it before and you want me to backtest? How do you backtest something that never happens before?
So Namo goes up and index goes down - that's easy enough to backtest and determine how many times it has happened before. It won't be "never happened before" Do you even backtest bro?
I believe what wmwmw is stating is that he has been looking at the MAMO for 30 years, and has never seen anything like what has happened on Friday, with the MAMO up and the index down. If that is totally true, then a backtest would show the same result. His 30 years of watching the MAMO is the same as a backtest. There's no need to do it, because his memory IS the backtest.
Just because someone says he's "never seen it before" and "has 30 years trading experience" is a basic "false authority/appeal to authority/appeal to accomplishment" logic fallacy. Oh, but there is a need to do it. This has happened 7 times in the last 2 years alone which I've determined through about five minutes of coding. Obviously there may be some differences between data sources and I freely admit that my code may contain errors. I post it here for others to test/replicate/critique rather than making sweeping statements about it. Code: import norgatedata import pandas as pd indexticker = '$COMP' advancingissuesticker = '#NASADV' decliningissuesticker = '#NASDEC' timeseriesformat = 'pandas-dataframe' start_date = pd.Timestamp('2020-01-01') indexdata = norgatedata.price_timeseries(indexticker,start_date=start_date,timeseriesformat=timeseriesformat) # Search for a situation # "Nasdaq was down 137 points yet NAMO was up." indexdata['chg'] = indexdata.Close - indexdata.Close.shift(1) indexdata.drop(columns=['Open','High','Low','Volume'],inplace=True) # Add in A/D data adv = norgatedata.price_timeseries(advancingissuesticker,start_date=start_date,timeseriesformat=timeseriesformat) dec = norgatedata.price_timeseries(decliningissuesticker,start_date=start_date,timeseriesformat=timeseriesformat) # Cleanup colummns adv.drop(columns=['Open','High','Low','Volume'],inplace=True) dec.drop(columns=['Open','High','Low','Volume'],inplace=True) adv.rename(columns={'Close':'adv'},inplace=True) dec.rename(columns={'Close':'dec'},inplace=True) # Merge A/D data into index data indexdata = pd.merge(indexdata, adv, how="left", left_index=True, right_index=True) indexdata = pd.merge(indexdata, dec, how="left", left_index=True, right_index=True) # Calc McOsc for Nasdaq indexdata['mcosccalc'] = 1000 * (indexdata.adv - indexdata.dec) / (indexdata.adv + indexdata.dec) indexdata['mcosc'] = indexdata.mcosccalc.ewm(span=19,adjust=False,min_periods=19).mean() - indexdata.mcosccalc.ewm(span=39,adjust=False,min_periods=39).mean() indexdata['mcoscchg'] = indexdata.mcosc - indexdata.mcosc.shift(1) # Find "Nasdaq was down 137 points yet NAMO (Nasdaq McClellan Oscillator) was up." # To prove/disprove "I have never seen this before." by wmvmw indexdata['wmvmw'] = ((indexdata.chg <= -137) & (indexdata.mcoscchg > 0)) # Show those rows that satisfy the condition print (indexdata[indexdata['wmvmw']]) Output: Code: Close chg adv dec mcosccalc mcosc mcoscchg wmvmw Date 2020-03-20 6879.520020 -271.060059 1307.0 2017.0 -213.598068 -49.251003 2.724048 True 2020-09-16 11050.469727 -139.850586 2046.0 1358.0 202.115158 10.166898 10.642873 True 2020-11-09 11713.780273 -181.450195 2373.0 1202.0 327.552460 31.498248 13.775218 True 2020-11-10 11553.860352 -159.919922 2133.0 1393.0 209.869537 37.234422 5.736174 True 2021-03-08 12609.160156 -310.990234 2007.0 2080.0 -17.861511 -57.224157 6.734503 True 2021-04-14 13857.839844 -138.259766 2292.0 1885.0 97.438354 -3.683592 6.163399 True 2021-09-17 15043.969727 -137.950195 2238.0 2209.0 6.521250 -2.064219 2.165337 True
Then code an algo to take advantage of his flaws, make millions of dollars and retire. Holy shit dude! Where's your journal on ET?!?
No, no,you understood wrong again. There were days that market were down and NAMO is up. But I have never seen a BIG down day like Friday and NAMO was up.
AGAIN? I've never interacted with your shit before. And since that is your attitude... Cry havoc, and let slip the dogs of war!