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(Yet) Another Lowry’s 90-90 Up Day at Trader’s Narrative

This was the best April Fool’s prank the bulls could have played on the bears!

Almost all the major indices finished up 3% or more. The semiconductors closed up more than 4%. The only thing to fall was gold, losing its 900 handle.

Just a few weeks ago I wrote about the hidden power of back to back 90-90 days and here we are with the market giving us the third one within less than a month’s time:

90-90 days March April 2008

I also cited 90-90 days when I stuck my neck out on March 12th, 2008 and in the face of all the doom and gloom being plied elsewhere, argued that we were seeing an intermediate bottom form.

To read the original and award winning research paper from Lowry’s that established 90-90 days, go to my free trading resource section and look in the folder: Charles H. Dow Awards. While there, try not to bump into too many other interesting articles and books ;-)

market breadth April 1 2008Today’s market breadth in both the Nasdaq and the NYSE was lopsided enough that +90% of the volume of stocks traded was up. And only about 9% in declining stocks (the rest were unchanged).

And point-wise, the Dow Industrial was up 391.47 - its 8th largest point move in history. Nasdaq was up 83.65 - kind of takes me back to the heyday when these kind of moves were the norm.

Such volatility was normal during the bubble but during normal market conditions it is a signal that we are carving out a bottom - or attempting to.

But if you’ve been reading this blog, that message isn’t really new to you.

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5 Responses to “(Yet) Another Lowry’s 90-90 Up Day”  

  1. 1 Scoad

    Yer too modest Babak yer “island reversal” post on T-bonds is lookin mighty sweet too. You were a little shakey for a while but it looks like back in sync and in fine form @ the moment. Still need to nail the top in oil & gold tho- ha,ha, good luck. Alot harder to nail a top than a bottom.
    I didn’t think the Dow indxs would go below the 2000 hi’s or NYA or RUT for that matter. Guess they still could but not lookin like it.
    From my perch here in C.A. I still think the 3rd worlders are gonna pull our spoiled, jaded, whiney butts out of the beautiful mess we’ve made. Going into the mountains for a week to see if the Bri- Bri are still buying gold or are trying out SOXX for size.
    Buy the way thats 3 90% days but theres a 4th that didnt make 90% but certainly would qualify as a follow thu day for the 1st- looks pretty solid.
    Thanks for all the great work.

  2. 2 Babak

    you mean this island reversal? T’werent nothin’ :-) I don’t like the bloggers who pat themselves on the back every day but maybe a post is in order re my brilliance. lol

  3. 3 b.

    Thanks for the analysis!

    How do you know if these days fit his point gained 90% defitnion? This would require having all of the NYSE stocks gains/loss for each day, no?

  4. 4 bill

    Hi, found your information via Kirk Report, I m able, using the adv and dec NYSE volume to pick up the signals on the 5th and 21st March 07 on the S&P, but am not getting any signals for March 08? Any thoughts?

  1. 1 Wednesday links: risk homeostasis « Abnormal Returns

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