General Comments
I am a big fan of data visualizations that help me see what is going on in world markets. Over the years, I've created many versions of these, but the ones I have now are finely crafted tools that strike a great balance between depth and breadth. Early
Chart of the Day
Take a look at the table of charts below. Each smaller chart shows the 10 largest stocks for that S&P 500 sector. They are graphed with historical (also called realized or statistical) volatility on the horizontal, and implied volatility on the vertical. The dot is the current value,
Chart of the Day
Here is a trade setup we published today as a MarketLife TradeLab, available to both MarketLife Premium and MarketLife Plus subscribers. We are also offering a lifetime 20% discount on MarketLife. Use the code SPRING19 and sign up today. After offering trading opportunities on both the long and short side,
Intraday Trading
This is part 2 of a two part blog. Read the first part here. Quick summary: to test the validity of price levels in markets, we created a test in which we showed a bunch (1,535) of traders 20 panels of charts. Each panel included two charts which were
Quantitative analysis
First, thank you to each of you who participated in the experiment/quiz. We have stopped collecting data, but you can re-take the quiz and see which answers were right or wrong here. Let me start with the conclusions up front, and then I’ll explain what we did and
Intraday Trading
Thinking in checklists is useful, especially for shorter-term traders. Every market situation is full of rich and complex nuance. Every moment in the market (or in life) is unique because the precise conditions that have existed before do not exist this time. We cannot possibly hope to deal with the
General Comments
I’ve tested market patterns, technical tools, and fundamental factors in thousands of combinations over the years. For me, this work is a quest for both truth and profits—the truth behind how markets really move, and the logical conclusion that someone who understands these truths is better able to
General Comments
Here’s a bit of a stream of consciousness post in response to today’s (5/13) market movements. First, these types of moves are often called ‘risk off’ moves because we see nearly one-sided trading in different assets—people rush to sell assets that are perceived as risky (stocks
Technical Patterns
This might be a more challenging blog post than most, but if you’re interested in really understanding price action I think it’s very important. Over the past several weeks I’ve been doing some deep dive coding and quant work. (Stuff like looking at correlation and cointegration in
Breakout
Here’s a quick look at two concepts that should be a part of your chartreading: ranges with pressure, and measured moves. There are two common approaches to chartreading, and I think both can be improved upon. One is to look at “big” patterns spanning many bars (think heads and
Technical Patterns
It’s great when all stars align and every signal tells you to do the same thing. That’s the idea behind multiple timeframe analysis (which, by the way, is a topic that should be more controversial!)… imagine the profits that can result when forces on different timeframes roll in
General Comments
A few days ago, I published a series of charts on Twitter throughout the day. (You should already be following me on Twitter!) These were intended to be quick-hit, one-off lessons contained in a single chart, and I thought it might be useful to republish them here so you can