Wednesday, March 12, 2008

Dow Greatest Gain Statistics




For those that entered long positions yesterday, congratulations. Dow made the biggest percentage one day gain since 2003. It went up by more than 3%.

Just computed some statistics based on historical Dow readings.

If one were to enter long position at the market open after Dow made a one day gain of greater than 3%, what is the probability of having a gain 5, 10 and 20 trading days later?

For 20 days holding period the probability of win is 57%. 10 days holding period probability of win is 59% and 5 days holding period probability of win is 66%.

1 comment:

QUALITY STOCKS UNDER 4 DOLLARS said...

The dow jones makes a great move once in a while.

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