Someone mentioned the ‘3 down days’ rule during the day and if any use, not too sure about 3 but there is a scan in market index that has a growing reputation amongst some good short term traders that I know.
It’s the ‘5 day down’ scan, lists stocks that have dropped in 5 consecutive trading sessions or more, on the 6th it runs at about 70% green to red, fairly consistent but on the odd day bears no resemblance to this rule as you would expect. The 70% probably understated as the red’s contain a small handful of complete dogs in highly defined downtrends which you wouldn’t go near.
Just he a quick count of today’s action, approx. 65 codes on list 45 green 20 steady or red.
These guys don’t do the speccies (neither does the scan) all mid, large & blue chips but they do trade substantial transaction size. Also they all agree they only pick the ones they have at least a minimal FA appreciation of.
While I’m on MI have a look at their afternoon wrap, they list broker updates that happen during the day. Good source document as the reaction to this usually takes a week or so to exhaust itself through the market, client base being large retail dollars, they don’t react in same lead times as you DT guys & gals, again mid caps up only I’m afraid but not necessarily a bad thing.
If you think in money flows and their duration both can be linked as liquidity events exhaust themselves from broker guidance to market, as the big retail money still tends to find security in Broker recommendations on investment timeframes.
If nothing else this can answer some questions as to why is this going up or down today.
Just FYI, if interested have a look at them for month or so and make up your own mind, good idea, BS or somewhere in between.
