A take on todays market action

“On today’s close, our short-term Pressure Factor hit an extraordinary oversold -169 [normally, -80 is an “extreme” oversold reading]. There were only six occasions in the past 60 years when the Pressure Factor has dropped below -160. Here are those initial dates: June 9, 1953; October 19, 1987 (after Black Monday); October 27, 1997; February 27, 2007; December 1, 2008; and June 4, 2010 (last summer). None of those instances saw the S&P even 1% lower one week later. Only one instance saw the market negative one month later – last summer which marked the correction bottom. And interestingly –perhaps coincidentally– 5 of the 6 saw the market up over 19% twelve months later. Such oversold extremes typically do not market the beginning of a bear market.”

I subscribe to a few services and this is a comment made from on of the ones I subscribe to. I have to caution you though these are of course not 100% predictive! But something to think about if you consider selling into a panic.

Of course…..as long as you have proper money management in place there would be know reason to panic.


Showing 2 comments
  • Adam

    How significant is it, Rick, in your opinion, that 4 of those instances are in the last 4 calendar years, so 4/7 of the sample is from 4 years, and 3/7 is from the other 56 years? Wondered if you had some insight as to why things seem so bumpy these days in comparison to looking at historical statistics like this one? Thanks

  • Joe

    Rick, just a note but you bought TSN for 18.50, not 18.39 or what was listed on the spreadsheet. Just wanted to point that out for your records, sure it was a mistake.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Not readable? Change text. captcha txt
Rickj's Handicapping Picks
Sign up now for our  newsletter. Includes handicapping tips

MLB Is free for the 2024 Season
See details on rickjshandicappingpicks.com

RickJ's Handicapping Picks  The latest in positive EV handicapping Techniques Overnight Plays in MLB are sent out around 3 to 4 PM PST the day before Come join us for a fun and profitable Pro Sports season!!!  
Sign up now  for a fun and exciting football season

Positive EV Handicapping

Do you know the important clues that help determine which side has +EV?
  • Learn about Reverse Line Moves and how they apply to each sport
  • Learn about being a contrarian and using public % numbers to get an edge
  • Learn about the seasons within a season that all sports have
  • Learn key numbers in all sports

Sign up to get updates that will help you with your sports handicapping!