Thursday the market again posted a day where 90% of the volume went to the upside. This follows Tuesday’s 90% up day. I looked back to 1970 at other times the market put in 2 90% days in a 1-week period. Instances are small, so it’s dangerous to rely too much on the results, but you’ve typically seen very strong moves after these tandems of 90% Up Volume days. Below I’ve listed all the occurrences along with the 20-day return of the market after such occurrences. (Results based on $100k per trade.)
It’ll be interesting to see which 90% study wins out (click here for other 90% study from 2 days ago). While a short-term pullback seems likely here soon, I am seeing more indications of further strength than I am weakness.
2 comments:
I hate to...
Looks to me that that is more a chart of trading "pre-trading Curbs" and "post-trading curbs".
Always the trouble with backtesting, you have to keep in mind that rules are dynamic over time.
There are some ideas one can draw.
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