{"id":18549,"date":"2012-04-10T10:10:21","date_gmt":"2012-04-10T14:10:21","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=18549"},"modified":"2016-09-20T19:21:02","modified_gmt":"2016-09-20T23:21:02","slug":"the-trusty-spearman-indicator-speaks","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2012\/04\/10\/the-trusty-spearman-indicator-speaks\/","title":{"rendered":"The Trusty Spearman Indicator Speaks"},"content":{"rendered":"<p>Back on March 26th, <a title=\"Back to Spearman and The Bloomberg Trend\/Stall Indicator (Heads Up!)\" href=\"http:\/\/www.thedisciplinedinvestor.com\/blog\/2012\/03\/26\/back-to-spearman-and-the-bloomberg-trendstall-indicator-heads-up\/\"><strong>we wrote that the Spearman Indicator<\/strong><\/a> was showing signs that a change in trend was possible. At that time, there was a hint that markets were vulnerable, but there was no definitive confirmation.<\/p>\n<p>Now that our Market Trend Indicator (MTI) is in a Strong Downtrend position, it is confirmed that the roll under the zero mark for the Spearman has also flashed a change in trend. It is important to look at multiple indications of market trend in order to<!--more--> better understand the potential when <a href=\"http:\/\/www.thedisciplinedinvestor.com\/blog\/mailbox\/tdi-investment-fund\/\"><strong>considering investment opportunities<\/strong><\/a>.<\/p>\n<p style=\"text-align: center;\"><a class=\"twitter-follow-button\" href=\"https:\/\/twitter.com\/andrewhorowitz\" data-show-count=\"false\">Follow @andrewhorowitz<\/a><script type=\"text\/javascript\" src=\"\/\/platform.twitter.com\/widgets.js\"><\/script><\/p>\n<p>Even though the Strong Downtrend is confirmed, it is not time to throw out positions that continue to work. Rather, it is a signal for extreme caution as the trend has an overriding pull on almost all stocks.<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/mti_00-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-18561 aligncenter\" title=\"mti_00\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/mti_00-2.jpg\" alt=\"\" width=\"300\" height=\"97\" \/><\/a><\/p>\n<p>One further note: The volume action Monday was lighter than the 10 day average showing that hedgies and institutions are not pulling the plug just yet.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/spearman_04092012-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-18560\" title=\"spearman_04092012\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/spearman_04092012-1.jpg\" alt=\"\" width=\"612\" height=\"400\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Along with the Spearman Indicator, we have also plotted the Bloomberg Trend\/Stall Study:<\/p>\n<blockquote><p>TrendStall identifies points at which a trend is losing momentum and is likely to stall or consolidate. The determination is based on a Rate of Change of the ADX. The parameters for the ADX, Rate of Change, and Moving Average of the Rate of Change are user adjustable.<\/p>\n<p>The bar that has been determined to be the `Stall\u2018 point is marked by a triangle above or below that bar. The price bars leading up to a TrendStall signal are painted a different color to alert the user that the TrendStall histogram has risen above the threshold level confirming a trend is in place and a stall is imminent. The period after the stall bar may also be painted on the price chart, depending on the value of the histogram (ADX ROC) in relation to a moving average of that value. This `paintbar\u2018 period is often valuable as an indication of a slightly longer stall confirmation.<\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<h1 style=\"text-align: center;\"><em><strong>Live and Alerting <\/strong><\/em><\/h1>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.triggerpointresearch.com\/subscription\/signup\"><img loading=\"lazy\" decoding=\"async\" title=\"tpr\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/tpr-10.jpg\" alt=\"\" width=\"334\" height=\"73\" \/><\/a><\/p>\n<p style=\"text-align: center;\">(<strong>Click the above for more information<\/strong>)<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Back on March 26th, we wrote that the Spearman Indicator was showing signs that a change in trend was possible. At that time, there was a hint that markets were vulnerable, but there was no definitive confirmation. Now that our Market Trend Indicator (MTI) is in a Strong Downtrend position, it is confirmed that the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12],"tags":[483,362],"class_list":["post-18549","post","type-post","status-publish","format-standard","hentry","category-markets","tag-markets","tag-techincal-analysis","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/18549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=18549"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/18549\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=18549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=18549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=18549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}