All or Nothing Days Have Become So Last Year
Monday, February 13, 2012 at 11:49AM Regular readers of the site are most likely familiar with the term 'all-or nothing' days and our frequent discussion of them last year. We consider all or nothing days in the market to be days where the net daily A/D reading in the S&P 500 exceeds plus or minus 400. In the last five months of 2011, nearly half of all trading days fit this criteria. For all of 2011, the S&P 500 saw a total of 70 all or nothing days, setting the record for a single year going back to at least 1990.
While last year's final few months were extremely volatile, the drop-off in volatility that coincided with the turn of the calendar is clearly evident in the number of all or nothing days so far in 2012. So far this year, there has not been a single day where the daily A/D reading of the S&P 500 has been +/- 400. While the year is only six weeks old, in terms of all or nothing days, it is looking a lot more like the 1990s than any of the last few.
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