Stock Market: Three Down Weeks in a Row? Now Rare

CNBC is claiming “the market” has not seen 3 down weeks in a row since January 2010. I ran a weekly chart to cross reference this because it seemed impossible with ‘flash crash’, the tough summer of 2010 (pre Jackson Hole Wyoming) and perhaps the November selloff due to Ireland. I do see three down weeks last August in the S&P 500 chart right before Bernanke promised to manipulate asset prices upward via the QE2 era, so I think CNBC might be wrong. The same pattern goes for the DJIA.

Needless to say three down weeks in a row has become a rare thing. When we do sell off, it is fast and quick – and right after said selloffs we have “V shaped” rebounds that once were rare (pre 2009) but now are the rule.

Thus far we are off to a rough start to this third week of selloff, and have only three (and a half) days to make it up.

p.s. on the previous entry I forgot to write another strategy is to wait for a new low of the day now that we are in a few hours in, and jump in at that point on the short side. That would be a break of 1295….

About Mark Hanna 542 Articles

Affiliation: Hanna Capital, LLC

Mark Hanna is President and Owner of Hanna Capital, LLC, a registered investment advisory firm. Mark has been a follower of markets since the late 80s, with a focus on individual equities since the mid 90s. He has been a well known commentator in the financial blogosphere for the past 5 years, following a career in corpoporate finance and accounting. Mark attended the University of Michigan where he graduated with a degree in Economics.

As an avid reader, Market Montage is the personal blogging site for Mark to share his views on economics, markets, and the like. Occasional cynicism and wit shall be deployed in his postings.

Follow Mark on Twitter @fundmyfund.

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