Post by PoorHomey on Apr 21, 2014 23:37:50 GMT -5
Thought this was interesting. No idea if it'll actually play out but the history / odds are compelling.
Since IWM‘s inception in 2000 (the 200-Day begins plotting in Spring 2001) price has traversed the 200-Day SMA 241 times. “Traverse”, by the way, simply means “to cross”: whether that’s on a closing basis, an intraday basis only, or via an overnight gap-down or gap-up.
Of those 241 occurrences, 241 (100%) have seen a close or (with a gap down) open beneath the 200-Day within 10 adjacent sessions. In other words, every time IWM has ever interacted with it’s 200-Day, sometime in the 10 days before or after it has closed (or opened) beneath it.
Cliffnotes version: If history repeats itself, IWM should be back below it's 200-day sometime before Tuesday 4/29/14
www.seeitmarket.com/meaningless-market-noise-pullback-signal-16047/
Disclosure: I'm still long 1 share of TZA
Since IWM‘s inception in 2000 (the 200-Day begins plotting in Spring 2001) price has traversed the 200-Day SMA 241 times. “Traverse”, by the way, simply means “to cross”: whether that’s on a closing basis, an intraday basis only, or via an overnight gap-down or gap-up.
Of those 241 occurrences, 241 (100%) have seen a close or (with a gap down) open beneath the 200-Day within 10 adjacent sessions. In other words, every time IWM has ever interacted with it’s 200-Day, sometime in the 10 days before or after it has closed (or opened) beneath it.
Cliffnotes version: If history repeats itself, IWM should be back below it's 200-day sometime before Tuesday 4/29/14
www.seeitmarket.com/meaningless-market-noise-pullback-signal-16047/
Disclosure: I'm still long 1 share of TZA
