| JAN 1990
Unchanged stocks by Charles A. Jaffe
Unchanged stocks by Charles A. Jaffe Investors and the media focus on the winners and losers in the stock market. Issues that stand still are not only boring, but their inactivity is seldom a signal for anything. Or is it? Last summer, Anthony W. Tabell of the Princeton, New Jersey-based Delafield, Harvey, Tabell Inc. was struck by the fact that, on many days, more than 500 issues on the New York Stock Exchange (NYSE) were closing unchanged. Intrigued by the round number 500 and the fact that he couldn't remember, even from his younger days, such a high percentage of stocks not moving, Tabell decided to look at the history of standstills. For the purpose of historical comparison, Tabell translated 500 into 25.5% of the issues traded. Tabell's research reaped some intriguing discoveries. The reason he couldn't remember 25.5% of the Big Board closing unchanged even during his youth, is that it never happened. Between 1958 and 1974, there was not a single day in which 25.5% of NYSE stocks were unchanged. But over history, a trading pattern with unusually high percentages of unchanged stocks emerge. Between 1926 and August 31, 1989 when Tabell released his information, 2,832 of the 17,150 trading days had seen 25.5% of the issues stand still. More than three-quarters of those incidents occurred in ""clusters"" lasting 100 days or more. Tabell defined a cluster as a period in which no two instances are separated by 25 days.
by Charles A. Jaffe
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.