Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

Follow through day

with 2 comments

If we hold together through the market close, today should qualify as the follow through day of the rally beginning from the March 6 lows. 

The “follow through day” is a day of heavy percentage gains in a major index accompanied by heavy volume and leadership from quality growth stocks.  To qualify, it must come on or after Day 4 from the market bottom. (IBD research shows the most common follow through days come on Days 4-7.)

This is not a raw “buy” signal. We’re in a bear market; all rallies must be treated with suspicion.

Advertisements

Written by heyercapital

March 12, 2009 at 1:36 pm

2 Responses

Subscribe to comments with RSS.

  1. Looks like we finally got one today, on the Nasdaq anyway!

    Chris

    June 21, 2011 at 3:56 pm

    • Thanks for the comment. The Nasdaq sure seems to be trying to pull along the deadweight of the rest of the market. Tthe IBD hesitated to give the Nasdaq a blue ribbon follow through day on Tuesday because of the reversals. Today’s struggles opened right above the lows from the 15th & 16th, and if they hold, ought to be good technical support.

      heyercapital

      June 23, 2011 at 11:25 am


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: