• Follow-Through Can Signal Market Turn
  • IBD Follow Through Articles
  •  Follow-Throughs should occur on days 4-7
  • Follow-Through Can Signal Market Turn
    • Confirmation comes with strength form leading stocks
    • FT day volume usually higher than 50 day average, but 8/16/2006 NASDAQ FT was lower, but higher than previous day
  • 80% of Follow-Throughs are successful
  •  8/16/2006 FT occurred on day 21 of rally. Other late FT's:
    • Day 14 Dow April 5, 1935
    • Day 22 Dow Dec. 30, 1943
    • Day 29 Dow Dec. 7, 1960
    • Day 24 S&P 500's  Dec. 1, 1978
  • "It is important to note that you only need to see one or two distribution days soon after a follow-through day to know that the rally attempt has failed"  How to Make Money Selling Stocks Short P 11
  • "If the market is making very little price progress on decreased volume, or if it abruptly begins to fail badly after a sharp, one-day rally, you are probably at another short selling point". How to Make Money Selling Stocks Short P 10
  • Be cautious of DOW Follow Throughs - With only 30 stocks, it doesn't take much for the institutionals to manipulate the index. In a March 2008 "Ask Bill" radio interview with Tom O'Brien, O'Neil mentioned 8/9 DOW FT IBD's last. Note IBD did call a DOW FT on 3/28, but this had more validity as it was combined with the Russell.
  • Follow Through failure rate studies (presented at CANSLIM Masters Semimar). Distribution Day occurrences:
    • 1-3 days after FT on sames index- High failure rate
    • 4-5 days after FT on sames index- 50% failurerate
    • > 5 days after FT on sames index- decreases with more days