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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: matvest who wrote (15342)3/23/2001 7:59:38 AM
From: OldAIMGuy  Read Replies (1) of 18929
 
Hi Larry, Back in January we had a one week blip where the
Speculation Index fell into Bullish territory. I presented
statistics going out into the future of where the market
usually was after this kind of event. Well, this time we
need to go a lot further!!

(Report, January, 2001)

NASDAQ 3 Month Change From Bullish Speculation Value
DATE % CHANGE IN NASDAQ
THREE MONTHS LATER
12/09/91 +10.0%
08/10/92 +15.5%
12/26/94 +10.4%
01/29/96 +14.0%
07/29/96 +13.3%
05/05/97 +22.1%
12/15/97 +15.4%
09/14/98 +23.6%
10/18/99 +44.3%
01/05/2001 ????

That brief one week signal has been followed on by some
very peculiar trading. Essentially all of the
above "Bullish" signals by Speculation lasted several
weeks. Maybe this one in Jan. was just a statistical blip
caused by the data from the Dec. sell-off.

The market switches gears much faster than in the past.
This may make a Low Risk measure less and less probable in
the future. Nothing stays down long enough to get the
statistics to the Bullish phase! Look at yesterday's last
half hour rally.

Best regards, Tom
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