Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
As those who follow the IBD systems hopefully know, a Follow Through Day has a failure rate of 30%. However no sustained upward move has ever occurred without a FTD. Hence, while important to see a FTD, they do generate false positives. With the reversal yesterday, we have one of those false positive – and today is following through of course.
The S&P 500 has broken the “gap up” of 1385 from the Apple’s earning report and is in process of ‘filling the gap’ – when filled it will take it down to the 1376 range.
And we’re right back in “the box” from low 1360s to low 1390s. Lucy pulled the football away from Charlie Brown on this one.
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
