WHAT ME WORRY?

Helene Meisler on realmoney has some interesting comments this morning about some of her technical concerns with the markets as they relate to new highs v new lows:

"I have been harping away, almost daily, about the lack of expansion in the number of stocks making new highs.

I have shown that chart here repeatedly so I will not show it again, although it did fail again on Friday morning.

I have also shown how the number of stocks making new lows continues to expand, not contract. Friday was no exception, as new lows rose once again. That too is not bullish. However, when we put the two together and plot them on a 10-day moving average, we can see a trend that has developed over time. That trend is one of lower highs as the market has risen. This translates into a market that is being carried higher by only a handful of stocks, not a vast majority.

Think of building a structure with Tinkertoys: the bigger the base, the sturdier the structure; the smaller the base, the shakier it is."

The point I would make is that, yes, this matters eventually, problem is I have no clue as to when eventually shows and I want to make some money while I wait. The money trade has been to buy the dips and selling the rips and until that stops working I will be doing just that.