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Strategies & Market Trends : Tech Stock Options

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To: Patrick Slevin who wrote (49247)8/4/1998 8:06:00 PM
From: Stoctrash  Read Replies (2) of 58727
 
Fact:
On Thursday, July 30, NASDAQ rose more than 2%.
The next day, NASDAQ turned around and declined more than 2%.

The only other time that has happened was two days before the crash in 1987.




Let variable values:
theSec = NASD

Date Day 1 2

10/22/1987 Thu -2.285 -11.076
07/31/1998 Fri NaN NaN

Avg -2.285 -11.076
AvgPos NaN NaN
AvgNeg -2.285 -11.076
PctPos 0.000 0.000
PctNeg 100.000 100.000


==================================================

Q: What happens when the Dow declines more than 1% on the day when Mercury enters its retrograde phase?
A: 1 week later, the Dow is just over 3.5% lower in 76% of 21 past occurrences.




Let variable values:
theSec = DJIA

Date Day 1w

02/26/1901 Tue -0.015
03/08/1907 Fri -4.553
01/10/1917 Wed 0.940
11/05/1920 Fri -7.092
02/21/1921 Mon -0.160
12/11/1931 Fri 1.331
03/31/1932 Thu -9.662
05/19/1936 Tue 3.234
09/01/1937 Wed -5.610
10/15/1941 Wed 0.033
01/18/1956 Wed -0.461
12/16/1957 Mon -1.228
09/24/1962 Mon -1.880
04/28/1970 Tue -2.014
10/30/1973 Tue -5.726
06/17/1974 Mon -2.028
01/30/1975 Thu 2.549
10/23/1980 Thu -2.316
10/16/1987 Fri -13.173
04/23/1990 Mon -0.372
01/09/1996 Tue -0.817
07/31/1998 Fri NaN

Avg -2.334
AvgPos 1.618
AvgNeg -3.569
PctPos 23.810
PctNeg 76.190
Maximum 3.234
Minimum -13.173
StdDev 4.043
ZStat -0.577
Variance 16.349

22 Occurrences





A Word on Retrograde Motion of Planets

Retrograde motion is typically considered to apply to the apparent motion of a planet in the sky as it orbits the Sun. Normally, planets appear to move in an west-to-east direction from night-to-night.

The planets further from the Sun than the Earth reverse their APPARENT direction during the year when the Earth "catches up" to the planet. This is similar to when you pass a car on a highway. The car appears to be moving backwards, even though it is travelling almost as fast as you. The outer planets all exhibit this retrograde motion once each year.

Mercury and Venus orbit closer to the Sun, than the earth. Despite this fact, they also appear to be moving west-to-east (normal motion) for about half of their orbit, then east-to-west (retrograde motion) for the other half.

Written by
Carl Matthews
Stanford University

Edited by William B. Noble
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