Monday, June 15, 2009

An Edge Based on Friday's Price & Volume Pattern

Below is a study from Friday night’s Quantifinder that was originally published in the Weekly Research Letter. (click to enlarge)



Instances are a bit low, but 17 of 19 occurences had at least one close below the trigger day close within the next 4 days. This study seems to suggest decent chance of some downside over the next few days.

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1 comment:

Daniel said...

NICE CALL, ROB! (cringe)

Indeed, as I write SPX is down ca. 2.5%. Where to cover and take profits..?

I'm frankly terrified to be aggressively short a market that seems to want to break out the way this one does.

Could this be the catalyst? A trip to the lower band of recent trading ranges, to set up momentum for the breakout which two weeks ago seemed such a "slam dunk"-- and now is becoming universally despaired of?

A contrarian thought...

Daniel