Six days out 78% of the instances were losers and the average occurrence was nearly a 3% loss. That seems to be a fairly substantial edge.
Tuesday, April 3, 2012
What the SOX is Suggesting About the Short-Term Direction of the NDX
One interesting aspect of Monday’s trading was the discrepancy between the NDX and the SOX. While the NDX rose 1.1% on Monday, the SOX declined slightly - which is unusual action. Typically, such action has been followed by weakness in the NDX. This is demonstrated by a study last seen in the 9/9/10 Subscriber Letter, which I have updated below.
Six days out 78% of the instances were losers and the average occurrence was nearly a 3% loss. That seems to be a fairly substantial edge.
Six days out 78% of the instances were losers and the average occurrence was nearly a 3% loss. That seems to be a fairly substantial edge.
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1 comment:
This study worked out very well! Today we something of the opposite; The sox ended up and Nasdaq closed down more than 1%. Is there some positive connotations to take from that?
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