This test was run from 1960-present. Only 8 occurrences makes it difficult to draw any solid conclusions. Still, these numbers are terrible. The maximum gain 20 weeks later is only 1.7%! The average loss is over 7% and the average trade lost over 4%. There were only three occurrences since 1988, but none of them were positive. They were 8/24/90, 10/13/00 and 3/2/01. Downside persistence like we’re seeing has historically been bearish.
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1 comment:
Downside persistence like we’re seeing has historically been bearish.
That's because no one is buying the dips.
Crude prices have ruined the markets.
If we're lucky, the NASDAQ will re-trace back to 3000-3200 before fall of 2009.
The next depression starts in 2010. :~(
BTW, great site you have here! It's one of my favorites.
dieselfuel
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