{"id":23882,"date":"2025-05-01T07:30:00","date_gmt":"2025-05-01T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=23882"},"modified":"2025-08-22T08:30:52","modified_gmt":"2025-08-22T12:30:52","slug":"this-indicator-has-a-100-success-rate-so-far","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-indicator-has-a-100-success-rate-so-far\/","title":{"rendered":"This Indicator Has a 100% Success Rate so Far…"},"content":{"rendered":"
\n

Managing Editor\u2019s Note: <\/strong>Today, we\u2019re hearing from our contributing editor Mike Burnick in his weekly Thursday feature.<\/p>\n

Mike has over 30 years in the investment and financial services industry \u2013 from operating as a stockbroker, trader, and research analyst, to running a mutual fund as a registered investment advisor and portfolio manager, to being Research Director for the Sovereign Society, specializing in global ETF and options investing.<\/p>\n

And he\u2019s been senior analyst at TradeSmith for three years, running Constant Cash Flow, Infinite Income Loop, <\/em>and Inside TradeSmith<\/em>.\u00a0\u00a0<\/p>\n

Here\u2019s Mike\u2026<\/p>\n<\/div>\n

This Indicator Has a 100% Success Rate so Far\u2026<\/h2>\n

BY MIKE BURNICK, CONTRIBUTING EDITOR, MARKET MINUTE<\/strong><\/p>\n

The drumbeat of doom in both the financial and popular press grew very loud since \u201cliberation day.\u201d<\/p>\n

Market sentiment got so bearish that it was actually bullish. \u00a0<\/p>\n

By almost any measure you choose, stocks were extremely oversold. All that was needed next was for buyers to step up to the plate. And last week, buyers showed up in a very big way.<\/p>\n

In fact, stocks triggered a rare indicator called the \u201cZweig breadth thrust\u201d last week. It\u2019s ultra-bullish for the stock market\u2019s long run prospects.<\/p>\n

It was named for the late great Wall Street legend Marty Zweig, who came up with this indicator.<\/p>\n

Not to get too technical here, but a breadth thrust happens when the 10-day average of advancing stocks divided by advancing + declining stocks swings from deeply oversold (below 40%) to overbought (above 60%) in 10 trading days or less.<\/p>\n\n\n

\"\"<\/figure>\n\n\n

In practical terms, it means buyers suddenly and completely overwhelm sellers. And it\u2019s a classic signal of a potential bottom in stocks when sentiment improves so rapidly and dramatically, as you can see above.<\/p>\n

Since 1945, 18 breadth thrusts have triggered for the S&P 500. Last week was number 19.<\/p>\n

And stocks have been higher six and 12 months later every single time, with the S&P 500 posting median gains of +25.7% one year later.<\/p>\n

Mike Burnick\u2019s Bottom Line<\/em><\/strong>: Granted, stocks are now overbought after this strong thrust higher. And let\u2019s face it, tariff trouble continues to lurk in the background. So, a near-term market pullback is a distinct possibility. But if so, that should be a great buying opportunity for the long run. Because last week\u2019s bullish breadth thrust means stocks could be substantially higher by this time next year.<\/p>\n

Good investing,<\/p>\n

\"Signature\"<\/p>\n

Mike Burnick
Contributing Editor, Market Minute<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Markets are heading up.<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[155],"newsletter-type":[],"ticker":[],"class_list":["post-23882","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-mike-burnick"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23882","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=23882"}],"version-history":[{"count":2,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23882\/revisions"}],"predecessor-version":[{"id":25043,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23882\/revisions\/25043"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=23882"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=23882"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=23882"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=23882"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=23882"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=23882"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=23882"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}