The 9-1 up day is a most encouraging sign, and having two of them in a short span is extremely bullish. I call it a "double 9-1" when two such days occur within a short period of time. As an indicator, this calculation falls into one of two types. The first and most bullish is when there is no intervening 9-1 down days. We have just completed such an event today. Over the last 80 years there have been 18 double 9-1 signals. After the August 1982 signal there were 2 more 9-1 days in October. This amazing display of thrust was soon followed by another double 9-1 signal completed in January 1983.
The latest buy signal came in November when the Russell added on 40% from the lows. Our studies reveal that every time we've gotten a double 9-1 signal the market has been up an average of 13% over the following 6 months.
Every bull market in history, and many good intermediate advances, have been launched with a buying stampede that included one or more 9-1 up days. Most notable was a one day reading of 42-1 on August 17, 1982. Not so coincidentally, it heralded the strongest bull market in 50 yrs.
Today's double barreled buy signal is the first time in history they have come so close together. This tells me that not only we have a minimum 25% advance but may also herald in a spectacular new bull market which began Monday March 9, 2009 and could last well into 2010 with a target of 14,000 on the Dow.
If you would like to find out more about our TTT Hedge Fund 2009 please call me at 850-329-6745 or e-mail me at tomandprisha@msn.com.
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