As you can see, the bearish inclination appears to max out after just 1 day. And while not terribly large, the edge has been fairly consistent over time. Just a little pattern to keep in mind today and in the future…
Thursday, January 5, 2012
Strong Closes for Very Modest Gains
The study below was from the Quantifinder yesterday and was last seen in the 1/26/11 subscriber letter. It suggests that when SPY closes strong (in the top 10% of its range) but still only manages a small gain on the day, that the next day has a downside tendency. Stats are updated.
As you can see, the bearish inclination appears to max out after just 1 day. And while not terribly large, the edge has been fairly consistent over time. Just a little pattern to keep in mind today and in the future…
As you can see, the bearish inclination appears to max out after just 1 day. And while not terribly large, the edge has been fairly consistent over time. Just a little pattern to keep in mind today and in the future…
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