What Tuesday's COMP Rally Could Signal in the Short Term

The COMP added 2.89% on Tuesday

Mar 2, 2016 at 9:33 AM
facebook X logo linkedin


Stocks rallied hard yesterday -- kicking off a historically bullish month on a strong  note -- with the Dow, S&P 500 Index (SPX), and Nasdaq Composite (COMP) all tacking on more than 2%. The COMP, in fact, rose nearly 3%, notching its loftiest one-day percentage gain since Aug. 26. So, what does this mean for the bigger picture -- something that can also be gauged by looking at the SPDR S&P 500 ETF Trust's (SPY) February close above this critical trendline. Schaeffer's Senior Quantitative Analyst Rocky White ran the numbers, and, if history is any guide, things look pretty good for stocks in the short term.

Specifically, going back to 2009, there have been 34 other instances in which the COMP gained 2.89% or more in a single day. While the next-day returns aren't as encouraging -- the index has averaged a loss of 0.14%, compared to an anytime gain of 0.1% -- the one-month return is a more impressive 2.3%. Meanwhile, the COMP averages a slimmer one-month anytime return of 1.4%.

Additionally, if past is precedent, the stock market could see increased volatility in the near term. In the previous times the COMP has had such hefty advances, the one-month standard deviation is 7.3%, compared to an anytime standard deviation of 4.9%.

160302compreturns

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI