Wednesday, July 14, 2010

A Pattern Suggesting A Pullback

Large gaps up like yesterday that reach new highs, go unfilled and finish above the open don't often follow through over the short-term. Below is a study that appeared in last night's Quantifinder that demonstrates this.


This study suggests a fairly potent downside edge over the next 3 days. Occurences are a little bit low but with only 25% of instances trading higher 3 days out and an average return of -1.4% I believe it is worth taking under consideration.

3 comments:

Daniel said...

Since you're clearly testing whether your alert and grateful readers are snoozing or not, we've met the challenge. Here is the correction to the text:

"with only 25% of instances trading lower 3 days out"

==>goes to: "with only 25% of instances trading HIGHER 3 days out"...

--another great post Rob, thanks as always!

Daniel

Rob Hanna said...

Thanks Daniel! I fixed it.

Rob

anthonyjensen張anthonyjensen欣虹 said...

很棒的分享~留言支持!.......................................................