These results appear strongly favorable. The average week over the sample period returned 0.175%. The results above beat the average by more than 3 to 1 from 1 to 4 weeks out. Last week's action appears quite bullish.
Monday, April 21, 2008
Strong Breadth To Finish The Week
A quick breadth study to share with you this morning. Wednesday and Friday’s rallies were both accompanied by strong breadth figures as advancers outnumbered decliners by more than 3 to 1. I looked back to 1969 to see how the market performed in the past when breadth readings were at least 3 to 1 positive in two of three days. Results below:
These results appear strongly favorable. The average week over the sample period returned 0.175%. The results above beat the average by more than 3 to 1 from 1 to 4 weeks out. Last week's action appears quite bullish.
These results appear strongly favorable. The average week over the sample period returned 0.175%. The results above beat the average by more than 3 to 1 from 1 to 4 weeks out. Last week's action appears quite bullish.
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2 comments:
Rob, How Markets Really Work found just the opposite, except they did not include the 2 of 3 days of 3:1
They simply tested 5 days out after a 3:1 day.
Interesting that it does not become more bearish, as one might think from HMRW, but instead, more bullish.
Woodshedder,
Thanks. I do recall that. It is interesting. On the other side, I believe Lowry's looks at back to back 80% days as a substitute for a 90% day, which leads me to believe they've found value in tightly bunch strong breadth days.
Perhaps one day could be viewed as a possible overreaction while two or more might confirm actual strength.
Regards,
Rob
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