August 30, 2011 Third Advance in a Row
You dont see three straight gains often, yet todays is the ninth so far this year. While there have been 69 others since the end of 1999, they are seen far more often in good times than when prices are heading down. Right now they come 3.5 percent of all closes since this recovery began in March 2009, whereas they amounted to just 1.08 percent in the previous, 2007/2009, downturn.
This same situation held in the 2003/2007 expansion, when the three straight advances came to 2.95 percent of all trading days. However, this ratio amounted to only 1.08 percent in the previous 2000/2003.
It seems plausible then to expect further gains, rather than corrections, in the near future.
As for tomorrow, the record shows an almost even division between advances and declines. Further, this parity holds whether prices are rising or falling.
DJIA .18 percent
NASDAQ .54 percent
S&P500 .23 percent
KNOW THE PAST . . . UNDERSTAND THE FUTURE