The Most Significant Thing That Happened Yesterday
- Posted by Frank Zorrilla
- on December 5th, 2013
The market did yesterday what it always does–it traded, it went down, up, and sideways. Something significant does not happen every day in the market were I feel the need to explain every tick. Yesterday stocks (my stocks) held up well even when the market was at the lows and I think generally many stocks did the same.
The historical stats over the next 20 days bodes well the SP500 based on a 52 week high print follow by four down days in a row; 18/19 ( 95% ) times $SPY closed higher over the next 5 trading day at some close . ( the only time it didn’t close higher over the next fie trading days was on 26 Feb 2007 , when it lost -5.38% over the next five days , but recovered after 20 trading days by closing lower by a mere -0.96% …@PastStat.
My process is based on market structure not on beliefs or myths of what works– or what doesn’t work. They are certain behavioral patterns that have been around for 100 years that are base on market structure, these behavioral patterns are recognizable, observable, and quantifiable. On daily basis we have 5,000 liquid stocks that we filter based on certain market structures that gives us an edge of a higher probability than a random outcome. Once the list is narrowed to a handful of names the market will further narrow down the list by getting us in or keeping us out of these names with a range expansion move.
These are what I consider very tight set ups that will trigger if they break yesterday’s high. On a regular trading day I would indiscriminately take every trigger because you just don’t know which one will be the big winner, you might have an idea but in the end you don’t know.
You can reach me at [email protected]
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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