🎯 HISTORICAL EDGE - AWAITING PULLBACK 🔴👋 Hey team!
Yesterday we saw interesting pattern forming. The NASDAQ Advancers have outnumbered the Decliners by at least 3:2 for 3 consecutive days in a row.
🏁We decided to backtest this strategy...as you know waaaaay back since 1999
⬇️ ⬇️ ⬇️ RESULT ⬇️ ⬇️ ⬇️
Edge appears bearish🔴 . Nearly 57.3% we have had a down move in the SPX the next day.
The times where we have followed this setup with an up day ☝️ produce about half the moves than the times we have followed this setup with a down day 👇 (aka LOSERS > WINNERS).
Is this a trade idea? No
What is it? A general historical view of how the markets will perform.So does the market so do the stocks in it. So our historical edge is leaning bearish. Hence, we ought to dial that in our position sizing.
Do not forget 💰 cash is a position.
You have been warned ⚠️
