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.
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.
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.
Subscribe to:
Post Comments (Atom)
2 comments:
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
Thanks Daniel! I fixed it.
Rob
Post a Comment