Dow Member Winning and Losing Streaks

Each day over at Bespoke Premium, we release a Stock Odds report (sample) that highlights current winning and losing streaks for all stocks in the Russell 1,000, the Dow, the S&P 500, and its ten sectors.  For each security, we look at all similar winning and losing streaks in the past to see how it has performed in the days following.  As an example, below we highlight the winning and losing streaks of the 30 Dow stocks.  Currently, 10 Dow stocks are on 5-day winning streaks, while none have been down for more than one day in a row.  The 30 stocks are sorted based on the percentage of the time that they have been up on the following day after streaks of the same amount.  Bank of America (BAC) currently ranks the highest, because following all 5-day winning streaks over the last 4 years, the stock has been up 67% of the time.  Caterpillar (CAT) ranks second at 54.5%, followed by HPQ, KO, and XOM.  While BAC and CAT typically go up following 5-day winning streaks, American Express (AXP), Alcoa (AA), and McDonald's (MCD) do not.  As shown, AXP, AA, and MCD have historically gone up less than 34% of the time on day 6 when they've been up 5 days in a row in the past.

On another note, 304 stocks (30%) in the Russell 1,000 have been up 5 consecutive days or more.  This is definitely the highest reading in quite some time, and while it could mean things are getting slightly overbought in the short term, it's a healthy sign that the market has found its footing.

 

Comments

[Tom Chechatka]

I completely agree this is a healthy sign the market is finding its footing. Indeed, one might reasonably expect better underlying support building here, compared to the August thru mid-September period, were a bottom, indeed, forming. That's what I am keeping my eye on. Seeing no sign of an overbought condition over the past five days -- only confirmation of the advance, every step of the way higher -- I suspect the market's move higher will continue, stat. (Yet a retest of last weeks' bottom still appears in order once this present advance reaches its zenith...)