Assessing Market Action With Indicators And History
Tuesday, August 24, 2010
In the January 13, 2009 blog study I looked at the concept of Turnaround Tuesdays. I found the old market adage really seemed to provide an edge. And while that edge had been prevalent since at least the 60’s, it had become even stronger over the last decade. Below I’ve rerun one of the tests from that post. In this case I looked for exactly 3 dwon days in a row and today being Monday.
These results are quite compelling and suggest a substantial upside edge.
Of course this morning's huge gap down may throw a wrench into things. I examined similar gap situations on June 29, 2010.
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.
All content on this site is provided for informational 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.
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.