Re: Financial topics
Posted: Sun Mar 01, 2020 12:07 pm
There's another thought I had upon waking this morning. Typically, the downside from a high has, over the past few years, started to accelerate about 10 days after a high. Therefore, when the market made its high on February 20 (I'm using futures), I counted forward 10 days to arrive at March 1 and made the assumption that the decline would be relatively slow until about that time (wrong, of course), then pick up.
I'll give some recent examples of this:
High July 16, 2007, downside acceleration begins July 26, 2007
All time high October 11, 2007, big downside day October 19, 2007
High April 26, 2010, flash crash on May 6, 2010
High July 21, 2011, downside accelerates starting about August 2, 2011
High January 26, 2018, downside accelerates starting February 2 and more on Monday, February 5
Let's say the decline really has been slow these first 10 days from the high relative to what is coming after about day 10. Well, I don't have to say any more.
I'll give some recent examples of this:
High July 16, 2007, downside acceleration begins July 26, 2007
All time high October 11, 2007, big downside day October 19, 2007
High April 26, 2010, flash crash on May 6, 2010
High July 21, 2011, downside accelerates starting about August 2, 2011
High January 26, 2018, downside accelerates starting February 2 and more on Monday, February 5
Let's say the decline really has been slow these first 10 days from the high relative to what is coming after about day 10. Well, I don't have to say any more.