Nasdaq extended from the 50 day..

Marty, In todays report you mentioned that the Nasdaq was extended 6.5% above the 50 day moving average and that was giving you concern. Do you have specific guidelines for Nasdaq extension above or below 50DMA. For example: at x% I start paying attention, at Y% I am concerned, at Z% I am very concerned... What actions are you taking at different levels.

Thanks

W

Wayne,

I do not take action just because the Nasdaq is 6%-10% above its 50sma. It is just an observation, and the leading stocks will be a better gauge for the health of the index.  The Nasdaq can trade 6% above the 50sma for a long time and we do NOT want to miss out on winning stocks just because of one indicator.

I hope this answers your question.

Regards,

Marty