My studies indicated a bounce was likely yesterday. It arrived, but unfortunately it was another example of a weak bounce. Below is a study that looks at SPY bounces from lows that lack volume.
(click to enlarge)
The only instance that did NOT post a lower close within 3 days was just 2 weeks ago – on 6/23/09.
In this blog I will be examining market action and quantifying my findings. Using sentiment, breadth, price and volume indicators - both standard and customized - I will try and uncover short-term edges which could be taken advantage of by market participants. I will frequently add opinion to these studies and may sometimes post opinions without quantifiable research behind them.
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All content on this site is provided for informational and entertainment purposes only. It is NOT a recommendation or advice to buy or sell any securities. I may hold positions for myself or clients in the securities or industries mentioned here. There is a very high degree of risk involved in trading securities. Your use of any information on this site is entirely at your own risk.
About Me
Rob Hanna
I have traded professionally since 2001. From January 2003 through February 2007 my bi-weekly column "Rob Hanna's Putting It All Together" appeared on TradingMarkets.com. I have been conducting quantitative research and designing trading systems - mostly focused on short-term edges since 2004.
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