ES Journal - 2012

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Quote from Josef K:

This reminds me of a statistic another trader once quoted. Back in 2008 I was working as a software development consultant and my client was a prop firm. My manager at the prop firm used to go to one particular trader there to get advice on market direction and how much he should be invested in the market. On one occasion in July or August, the trader excitedly quoted him a statistic to the effect that 96% or so of all stocks in the S&P 500 were at or near their 52-week lows, and said that this phenomenon had only happened a few times before, and that it happened at the end of big downward moves like the 1987 crash. He declared that it was time to buy and that he was going all in.

We all know what then happened come September.
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It actually works better for tops than bottoms I think. But Nasdaq/150Day is only at 59 or so right now (hasn't yet reached 70 on this upswing), so I'd be a little cautious not to short too big yet.
 
News out.

2:00 pm : Equities have extended their losses in a sell-off which saw the major averages and crude oil drop to session lows. The move coincided with European Central Bank's Luc Coene saying that outright bond purchases by the European Central Bank are very unlikely.
 
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