July 24th - 9/11 style bottom

Discussion in 'Technical Analysis' started by billb2112, Oct 12, 2002.

  1. Here I go on a limb again.

    I just wanted to share something I've noticed. I've been using a trading system that does decent on Nasdaq (high volatility) stocks. If I run the same algorithms on the Dow 30 the system really doesn't do terribly well <B>except</B> on significant "bottoms" (I hate that word). 9/11, July 24th all triggered trades (long) for many of the Dow 30 and all returned a profit similar to how the more volatile Nasdaq stocks do.

    The point of the story is, if history repeats itself, I'm noticing a good number of Dow stocks triggered a buy on the system on 10th and closed for a good profit on the 11th. I didn't trade any of them personally, but did a little backtesting.

    Of course, once it seems like the pattern is "established" it no longer exists, but this has been personally my best evidence thus far. We'll see if it holds up. I'm also not calling this <B>THE</B> bottom either ... but maybe another short term bottom like 9/11 and 7/24.

    Anyone else seeing systems or indicators that have a similar pattern?