Rejected thesis
Pocket pivot (O'Neil / Morales)
Thesis (rejected): Inside a base / Stage-2 uptrend, an up-day whose volume exceeds the highest volume of any DOWN day in the prior 10 sessions is a stealth-accumulation footprint that precedes the visible breakout.
Code: research/pocket_pivot.py
Report: research/pocket_pivot_report.json (n=134,049)
| Horizon | edge vs ctrl |
|---|---|
| 5d | +0.18 % |
| 10d | +0.12 % |
| 20d | -0.01 % |
| 40d | -0.32 % |
OOS-2020+ doesn't help (20d edge +0.09 %). Adding a Stage-2 trend gate also fails to rescue it: Stage-2 vs non-Stage-2 buckets are indistinguishable on every horizon. n is enormous (134k events), so this is not a statistical-power problem — the within-base single-day volume signature simply does not predict forward returns once the universe is broad enough to remove selection bias.
Verdict: Reject. The "stealth accumulation" intuition is present in O'Neil's hand-picked anecdotes but does not generalise.
| Sample | 134,049 |
|---|---|
| Validator | research/pocket_pivot.py |
| Verdict | Rejected |
Every result here is reproducible from the script named above. Reports are in the repository.
- Volatility squeeze
- Pre-FOMC drift
- Uptrend pullback
- Momentum continuation
- Industry-relative momentum (at 4-week lookback)
- Earnings-reaction reversal (anti-PEAD)
- Beat-persistence pre-earnings drift
- Sector ETF mean-reversion
- 52-week-high breakout
- Volume accumulation (above-200DMA +...
- Cross-sector momentum
- Analyst-upgrade cluster