Tuesday, August 13, 2013

No Turnaround Edge This Tuesday?

Tuesday has shown strong inclinations to turn around over the years when there has been a pullback leading up to it.  But when the pullback has been 2 days old and the market has been in a long-term uptrend, that turnaround inclination has not held true.

Whose fault is that?  Not the overnight.

It's been the day session.  Below is a are the results of going long Tuesday morning after a 2-day pullback during an uptrend, and then exiting at the close.

As you can see, the stats show a moderate downside inclination.  I also produced a profit curve to see how this has played out over time.

A bit choppy, but it has been headed lower for a long time.  Traders may want to be a little cautious about jumping aboard the "Turnaround Tuesday" train today.  The market has historically struggled between open and close under similar scenarios.

1 comment:

shamon Baker said...

This article is mind blowing I read it and enjoyed. I always find this type of article to learn and gather

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