Extreme Selling Leads to Rare & Immediate Reaction

After already discussing the legendary selling wave stocks experienced this month through December 24th, one of the sub models within our big stock market model triggered a scenario based on historic levels of overdone selling that has only been seen a handful of times since 1980. Each and every time, stocks saw significant gains almost immediately, even when in the context of a bear market.

You can see all of these on the charts below with the arrows pointing to the triggers, including the most recent one at the close on December 24th. If this sub model works anything like past instances, stocks should be rallying before the week is over. If stocks continue to crater, it will be yet another case in what is becoming a very long line of failed studies and indicators this month.

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Paul Schatz, President, Heritage Capital
Paul Schatz, President, Heritage Capital
If you have at least $250,000 of investable assets and would like to schedule a complimentary meeting, call, or video conference with me, please click on my calendar here email me at Paul@investfortomorrow.com or call the office directly at 203.389.3553.

Comments

  1. Marc Joseph Mosqueda says:

    Welcome to legalized gambling Paul. Really! Welcome to Chicago and the CME.

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