Today, 2.27.12, marked the 40th day since SPY has had a pullback greater than 0.99%. Is this setup bullish or bearish over the intermediate term?
Buy SPY at the close if
- today is the 40th day since a pullback greater than 0.99%
- sell the position X days later
No commissions or slippage included. All SPY history used.
Pretty interesting, eh?
There were 15 instances of this setup.
The SPY Buy-n-hold results were generated by dividing the SPY history into 50 bar segments and then averaging the results of all the segments.
Slightly Off Topic:
Good begets better. Strength begets more strength.
It makes me think about kinetic energy: For an object that is moving the kinetic energy equals one-half times the mass of the object times the square of the speed of an object, or Ek=(1/2)mv².
I have my thoughts on this, but am curious to hear yours. What metric for SPY would be substituted for mass (m) and what metric would be substituted for speed (v)?