Tuesday, November 13, 2007

Reversal of Fortune Breadth Call

Looks like the "Warriors" came out to play after all. The NASDAQ 100'S 4.23% gain on the day was solidly in the middle and double the median of the next-day-4-day-down stats posted yesterday. The vast breadth in reversal participation today (proprietary), plus options expiration week statistics (see Bespoke) suggest an edge on a momentum follow-through day tomorrow.

Volume was a tad light though and the trend is still down. Why do I have a feeling there will be an equal number of calls for a "bear trap" out there? At least there was no "throw away" at the close, although there has been a small give back in the after hours.


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