Dancing with the Trend

Greg Morris
About the author: has been a technical market analyst for over 40 years and is the author of several popular financial analysis books including Candlestick Charting Explained, Investing with the Trend and The Complete Guide to Market Breadth Indicators. Before retiring, he served as the Chief Technical Analyst and Chairman of the Investment Committee for a technical-based money management company with over $5.5 billion under management. Greg has appeared on CNBC, Fox Business, and Bloomberg Television and has also spoken at numerous financial conferences around the world.

Latest Posts

Dancing with the Trend

Market Breadth and Technical Analysis

by Greg Morris

Some of the following is from my book, “The Complete Guide to Market Breadth Indicators,” published by McGraw-Hill in 2005, with the Second Edition now available in Amazon Kindle format. “The noblest pleasure is the joy of understanding.”  Leonardo da Vinci Market Breadth Market breadth indicators are those indicators that are sometimes referred to as broad market indicators.  Probably the simplest way to think of them is to realize they generally do not refer to, or use information relating to an individual Read More 

Dancing with the Trend

Dancing with the One That Brung Ya!

by Greg Morris

My apologies to the late Darrell Royal, the University of Texas football coach who used this saying often when defending his continued use of the “wishbone T,” an offensive football formation that some were always questioning.  The saying has a valuable message that is applicable to many endeavors; simply, do not forget how you got where you are.  It is very appropriate to investing strategies that have long-term success. It seems that this simple, yet on-the-mark concept gets lost when it comes to making money in the equities market.  The fortunate among us have Read More 

Dancing with the Trend

Hindenburg Omen

by Greg Morris

There are many who are now talking about the Hindenburg Omen so I thought I would explain what it is and where it now stands.  This is easy since I knew Jim Miekka (creator of the Omen) as he offered to assist me when I included some of his material in my “The Complete Guide to Market Breadth Indicators.”  Jim also made many other contributions to technical analysis, including a mathematical process to refresh the McClellan Summation Index. The Hindenburg Omen is an indication of market tops and was created by James R. Miekka and dubbed “the Hindenburg Read More 

Dancing with the Trend

Article Summaries 8-2016 to 10-2016

by Greg Morris

Most blog authors on StockCharts.com are writing about the current markets and do an exceptional job.   I do not write about the current markets as I wanted to share my experiences after 40+ years as a technical analyst.  Not only experiences with trading and investing, but model building and money management.  I also share the details of all the Master’s degrees I have – those expensive learning experiences that hopefully I learned something from.  Since I rarely go back into the archives of other’s blogs that I read, I wondered if that is common or not.  Read More 

Dancing with the Trend

Time for Genuine Concern or just More Wall of Worry?

by Greg Morris

Is this a market correction?  Generally accepted levels (-10%) that most deem as a correction versus just a market pullback (-5%).  Is this going to become a bear market (-20%)?  First, there is not a person on Earth that knows the answer (despite what you hear on TV), and I do not even attempt to claim that I do.  I read a great deal, too much maybe.  Many believe this is just a correction in an ongoing bull market.  Many technical analyst friends of mine strongly offer evidence that a bottom is going to be soon.  And just as many think we are at the Read More 

Dancing with the Trend

WHY Are So Many Esoteric Things Attached to Technical Analysis II

by Greg Morris

This is the second in a series with the first few paragraphs the same as the first one.  I am not sure why there are so many vague and totally subjective analysis techniques that have become part of technical analysis.  Probably because the main stream Wall Street and their marketing department, academic finance, does not follow technical analysis like they do the accepted rubbish from the ivory towers.  Early in this WHY series I tried to be convincing that technical analysis’ basic premise is the analysis of price; price that is determined in the auction marketplace.  Read More 

Dancing with the Trend

WHY Support and Resistance Works

by Greg Morris

Support and resistance are mainstays in technical analysis; sadly, misused and abused by many.  The purpose of this article is to hopefully explain why they work when used properly.  I have to admit that when I first got interested in technical analysis and charting, I drew trendlines all over the place.  Once I began to fully understand the basic premise of technical analysis; that it is based upon price; price that is determined in the auction market by buyers and sellers.  I have discussed my thoughts on trendlines in an earlier article but after 45 years only Read More 

Dancing with the Trend

High Low Validation

by Greg Morris

This is an attempt to help validate new high and new low data and, to be honest, is still a “work in progress.”   If you consider the facts relating to new highs and new lows, you will see the necessity for this.  A new high means that the closing price reached a high that it had not seen in the last year (52 weeks).  Similarly, a new low is at a low not seen for at least a year.  Note: This makes them very different than Advances, Declines, Up Volume, and Down Volume, which are based upon the difference over the previous day.  These indicators try to identify Read More 

Dancing with the Trend

Scrambling to Safety

by Greg Morris

Once a bear market gets underway (nautical term), few will make adjustments to their portfolio. Usually it is well into the decline before most even begin to get concerned, and then they are convincing themselves that it is too late and they might sell right at the bottom.  That is certainly the siren song of most.  Market tops are extremely difficult to identify except in that wonderful world many live in called hindsight.  Especially after an extended bull market well into its 7th year. Chart A is the Nasdaq Composite with its top in March Read More 

Dancing with the Trend

Technical Analysis and Its Return to Prominence

by Greg Morris

When I started in this business, most of my analysis was done with graph paper, colored pencils, and a very expensive red LED calculator (mid-1970s).  I subscribed to Barron’s and on Sunday afternoon would sit at my desk (which looked a lot like a kitchen table) and calculated various moving averages for the NYSE Index, the advance decline line (required a calculation of its own), and about 50 active stocks that I followed.  I would diligently plot them on graph paper as if they were to be preserved as future works of art. The bookstores in the Read More 

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