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