Assessing Market Action With Indicators And History
Tuesday, October 4, 2011
A Turnaround Tuesday Scenario
Tuesday happens to be the most likely day of the week for a turnaround.I first examined this in the 1/13/09 blog. With the last 2 days being heavily lopsided to the downside the odds of a turnaround on Tuesday are even higher. This is demonstrated in the study below.
All the stats heavily favor a rally on Tuesday, and if not Tuesday, then Wednesday. Perhaps the bulls can win a day or two here.
Of course the current environment is a bit more extreme than most of the sample...
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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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.