Saturday, August 27, 2022

What does a 90% down volume day mean?

What does a 90% down volume day mean?

 

Corona Del Mar, CA

 

Howdy ,

 

Ah...a big down day on a Friday.

 

In fact, there was a 90% down volume day.

 

Economists will use that info to confirm their suspicions of a looming mega-bear about to claw everyone's eyes out as the economy descends into the abyss.

 

Evidence-based traders will analyze all the occurrences of a 90% down volume day on the NYSE and see what happens next.

 

Many companies such as Lowry's have done just that.

 

// Not to be confused with the steakhouse //

 

The bottom line is that you should expect a rally.

 

The stock market averages revert to their short-term average prices anyway, and a 90% down volume day is no exception.

 

In fact, just about every stock shows counter-trend behavior.

 

I've created some kick-gluteus stock trading strategies like Market Maker Secrets that is just a hair away from making new all-time equity highs despite the bear market this year.

 

The Smart Money indicator is also bullish. No changes in wrong-way E-mini traders who are dead set on shorting into strength.

 

Getting back to 90% down volume days on the NYSE...

 

It's an interesting statistic...but it's not a trading strategy.

 

Can it be used in a trading strategy?

 

Well, it's so rare and unnecessary as an ingredient.

 

I typically ignore it, but I thought it could be helpful.

 

Speaking of helpful, here's what would really help economists (who I've been picking on because they deserve it):

 

Economists believe they can take in all sorts of data and news...churn it around in their giant brain...and then spit out an answer of what to do next.

 

I 100% agree with all my haters that I'm not smart enough to do that.

 

So here's what I would do:

 

Gather tons of economic data from the Fred database.

 

Then I would perform a backtest letting The Boss SuperAi pick and choose which data to use.

 

It would then randomly combine the data with simple mathematical formulas to see what has the best forecasting ability...aka a strategy.

 

It would murder the bottom half of strategies with the worst performance, and breed the winners.

 

Rinse and repeat over 100 generations.

 

And then...

 

...oh who f-ing cares?

 

It won't work.

 

The damn data is monthly so you won't have enough samples. (statistical significance is a bitch).

 

The whole project was doomed from the start.

 

Game over economists.

 

Game over Great Reset.

 

Game over communist utopia.

 

You idiots don't have enough data to predict your way out of a wet, bug-filled paper bag.

 

Trade smart,

 

Dan "Prince of Proof" Murphy

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio Boss, Inc.

260 Newport Center Dr, Suite 100 Newport Beach, CA 92660

 

Don't want to stay in the loop with Dan? We'll be sad to see you go, but you can unsub to no longer receive emails.

 

Government required disclaimer: The results listed herein are based on hypothetical trades. Plainly speaking, these trades were not actually executed. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under (or over) compensated for the impact, if any, of certain market factors such as lack of liquidity. You may have done better or worse than the results portrayed.

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