Finding an Edge

I was going through three indexs tonight and found something worth writing down.

Dow Jones Composite Index

• Slow Stochastic indicator dipped below 80 on the monthly chart. I found two other occasions when the market bounced off this level and found out the percentage drop from it’s recent peak to the low.
• From January 1994 high to December 1994 low: -17.14%
• From July 1998 high to September 1998 low: -21.23%
• From July 2007 high to January 2008 low: -17.57%

Dow Jones Industrial Average Index

• Slow Stochastic indicator stayed above the mid level since 1950 on the quarterly chart.
• 15 period moving average is the support on the quarterly chart.

Standard & Poors Dep Rec

• The last time the SPY was in a bear market, SPY went down initially 4 months in a row before moving up on the 5th month.
• Market went up 10.49% after being down 4 months in a row from September 2000 to December 2000.
• Currently, the SPY is down 4 months in a row, and I expect it will move higher to about 139.

10k Project Portfolio

http://www.stockalicious.com/stock_journal/1304

* Value: $10,078.00
* Return: 0.09%
* Did you beat the
– Dow Jones (0.19%): No
– NASDAQ (0.91%): No
– S&P 500 (0.27%): No