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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: Lee Lichterman III who wrote (12807)7/26/2001 9:24:42 AM
From: Terry Whitman  Read Replies (1) of 52237
 
Interesting data point from trader Nick-

>FIVE-DAY PRICE MOMENTUM

On April 19, 2001 the S&P 500 had moved up +7.5% in five days. This ranks as
number 11 of 12 such moves in the last 30 years, and we pay attention to them
because they are pretty reliable indicators that the market will be higher in
three, six and 12 months later.

The only dud in the group was the signal on March 21, 2000, the signal just
before this most recent one. At the end of a year the S&P was down -23.50% --
conspicuously not typical.

Now at the three-month milestone for the current signal we find the S&P down
-3.08%, the second worst 3-month performance in 30 years. Not a good omen.

You can see the complete record at
decisionpoint.com.
>
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