The Quick Takes Pro blog by Michael Kahn, CMT about anything that might affect your portfolio.
Wednesday, July 7, 2010
fun fact
Well, its not a actually a fact since I do not have the numbers to back it up. But isn't it true that the biggest one-day gains are made in bear markets, not bull?
"Heavy volume off of a low is bearish. The only time heavy volume is bullish is when it occurs after a breakout - never before! Basic tenet of market timing 101."
As a CMT, I was unaware of this "tenet." However, DeMark does have the cred to back this up.
"Top Ten Largest Point Increases in the NASDAQ Composite Index"
ReplyDeleteAll in big bear markets -- 2000-01, 08. Largest percentage increases, same page, same story.
Here's the data for the Dow:
ReplyDeletehttp://online.wsj.com/mdc/public/page/2_3047-djia_alltime.html
From Tom DeMark in a chat room:
ReplyDelete"Heavy volume off of a low is bearish. The only time heavy volume is bullish is when it occurs after a breakout - never before! Basic tenet
of market timing 101."
As a CMT, I was unaware of this "tenet." However, DeMark does have the cred to back this up.