Friday’s Daily Buy/Sell Strength and Extremely Unusual Action [FIXED]
Friday was an interesting day.
{I would right-click and open the pictures in a new tab so you don’t keep having to press “back” to get back to the original post.
What’s interesting about it is that there was strong buy strength, even though the day ended negative.  It is extremely unusual to see a doji day with such large strength.  I double checked for any times that the S&P’s percentage change was less than .25% and there was buying of at least 2x the standard deviation mean and found it is quite rare, occurring 18 times in the last 2600 trading days or .69% of the time.
The results from going long at the close of the doji day and selling at the next close:
Not enough trades over 10 years to make it worth it, but it does have a high win rate.
Can’t read the chart, as it won’t pop, but wasn’t Friday’s unusual activity due to the Russell rebalance?
Interesting indeed. But add your study to this and are we back to square one?
http://www.greenfaucet.com/technical-analysis/a-study-suggesting-short-term-downside/23171
Danny, I’m not sure if this would prove useful but I think it would be interesting to know during which month of the year did the S&P register the most 3, 6 or even 12 month lows.
Dub - the study was solely for shits and giggles, not really actionable.
I think seasonality stuff is probably worth checking out. I place a lot of these studies (seasonality, moon cycles, tides) in the same camp. Interesting yes, actionable maybe, ymmv, etc etc.
Jakle - def not due to russell rebalancing in and of itself