Study: what happens next when the Dow goes up 8 days in a row

Discussion in 'Index Futures' started by Troy Bombardia, May 15, 2018.

  1. The Dow Jones has closed higher 8 days in a row. Historically, this is a short term bearish sign for the stock market (but has no medium-long term implications for stocks).

    The stock market either makes a sideways consolidation, pullback, or small correction. The point is, no need to chase the rally in stocks right now. You can wait a little
    tommcginnis likes this.
  2. Because everybody knows history repeats itself ......... exactly. Each and every future point in time. Right?
  3. JSOP


    It corrects a bit and then continues to go up when there is enough reason to do so.
  4. EsKiller


    Maybe not, but I know some guys that backtest the crap out of situations similar to these and make a healthy living doing so. Research is about 8 hours a day, and trading is done via algo, but it can be done.
  5. rb7


    The goal is not to be right all the time, but to make money overall.

    The market is an ocean, we only need to grab a few scoops of it every day.
    Pekelo likes this.
  6. And streaks are made to be broken but all eventually end. I don't rely on streaks either way. Just price.
  7. tomorton


    Interesting. Thank you.

    I have the Dow marked for a buy, but only after a pull-back of at least 3 days to a swing low with a daily low higher than 03/05. By the sounds of it I might get it.
  8. but that undertow...

  9. Each day is 50/50. See Gamblers Fallacy.
    comagnum likes this.

  10. Well, today it fell 193 after 8 days of gains.

    But, the bearish signal was correct...
    #10     May 15, 2018