On the NYSE yesterday Up Volume made up nearly 96% of all volume. This was the 2nd 90% up day in the last week (the other being last Thursday). I’ve shown before that this setup, while rare, has led to some extremely bullish returns. The last time I discussed this setup was in the May 28th Subscriber Letter. I’ve updated the stats below.
So while instances are low, returns have been very explosive. The results over the 1st few days are choppy – likely thanks to the fact that the 2nd 90% day will normally put the market in an overbought position. Once you get out over a week, the upside overwhelms.