• Study of the Week: Big Up Days Are Good, Right?

    by  • October 10, 2013 11:52 am • Breaking News, Quick Hits, Study of the Week • 0 Comments

    On the surface, you’d think big up days are usually a good thing.  Funny thing is that might not be true.

    Turns out, slow and steady usually wins the race.  Case in point, only one day this year has had a gain of more than 1.5% for the SPX (trivia stat – it was the first day of the year).  This is the lowest number of ‘big’ up days since 1995.  Well, for those scoring at home, ’95 was also one of the best years in a generation, gaining 34%.

    Here’s a great chart summing it all up.













    As you can see, 2008 was a horrible year, yet it had the most >1.5% up days for the SPX going back to 1990!  Then in the early 2000s, we had three straight down years and a big surge in ‘big’ up days.

    So maybe big up days aren’t always a good thing.

    Oh, by the way, as of right now the $SPX is up +1.67% today.


    Ryan Detrick is the Senior Technical Strategist at Schaeffer's Investment Research in Cincinnati, Ohio. He joined Schaeffer’s in 2003 and is a frequent speaker and writer on stock market and economic issues and is widely sought after by financial media for his expertise and commentary. Mr. Detrick is a common guest on CNBC, Fox Business, and Bloomberg Television and has been quoted in outlets such as The Wall Street Journal, BusinessWeek, USA Today, Reuters, the Associated Press, and others. With a decade of financial industry experience in the investment and financial services area, strengths include short-term trading with an eye toward timely technical- and sentiment-based trading opportunities, and advanced option trading strategies. Mr. Detrick received a BA in finance from Xavier University, an MBA in finance from Miami University, and has earned his Chartered Market Technician (CMT).


    Leave a Reply