The Dow has been down for five consecutive sessions, and going back to the start of the bull market, this has happened seven other times. The average percent change on the day after this has occurred is +56 bps, with positive returns five out of seven times. The current 5-day losing streak has caused a decline of just 1.19% in the index, however, which is the smallest loss of the group.
Can statistics from the past three years have meaning given that we have an election in a couple of days for which polls are suggesting a dramatic change in the political Congressional composition? Answer: No. Recommendation: Keep your bets small and short.
Posted by: Mr. X | November 03, 2006 at 11:46 PM