Selling Stampede

According to Jeff Saut a selling stampede is when the market sees constant selling with only 1-3 session counter-trend rallies. A typical selling stampede lasts 17-25 sessions. Even during the financial crisis this framework seemed to work well, except for a single instance where a selling stampede lasted over 30 days in late 08'.

If we are currently in the midst of  a selling stampede today is session 12. It has been a long time since I dusted off this framework as it typically occurs during times of crisis.

3 comments:

Anonymous said...

Yes but imbedded within these long stampedes are quick 1-2 day waves of massive 2-3% squeezes.  nothing is straight down

Anonymous said...

in fact if you are a good short term timer, the rewards sniping long side can be enormous.

Tsachy Mishal said...

agreed.