Chart of the Day
This is an important time in global markets. Equities are at a potentially important inflection, and short term noise may be misleading many players. Currencies have had some fantastic moves, but now there is the danger of snapbacks over the next few weeks. Precious metals, petroleum, grains? There is opportunity,
General Comments
[dc]M[/dc]uch of my writing here has focused on quantitative tools and ways to look at data. I have called for higher standards and have questioned many of the established tools of technical analysis. I will continue to do that; we're actually going to dive deeper
Individual Traders
[dc]M[/dc]any years ago, a friend of mine shared an encounter he had with a successful investing club. This club was not like many of the others—they didn’t pool their money to trade stocks, do fundamental research, or, in fact, do any research of any kind.
General Comments
A quick look at stock market performance by market cap slices. Simply put, smaller cap stocks (e.g., Russell 2000 (IWM)) tend to outperform larger cap stocks (S&P 500 (SPY) used in the video) during "risk-on" market cycles. This is probably driven by investor psychology and
General Comments
[dc]T[/dc]oday I want to follow up on my previous posts on the rally in the Indian stock market and think a bit about how to balance technical and fundamental factors. Not so long ago, the idea that anyone could figure out anything from looking at patterns on
Failure Test
[dc]I[/dc] want to write what might be a complicated blog post, but stick with me. I'll try to make it as clear as possible, because there is a good lesson here. Today, I want to look at volatility, how volatility evolves (changes), and how we can
General Comments
[dc]C[/dc]harts can be a powerful tool for market analysis and trading. At a glance, they can provide a quick overview of important price movements, can highlight supply/demand imbalances, and can suggest where repeatable tendencies in the market might be. Furthermore, because they are a visual tool,
General Comments
This is repost of an article I wrote last year (2012). I would have updated the numbers, but it wasn't really necessary as last December was flat enough that it did not materially alter the stats. This is the time of the year when we will start hearing
General Comments
I was on Chuck Jaffe's MoneyLife show last Friday discussing the longer-term outlook for stocks in 2014. (The file is an 8 minute audio file.) The subject of biases is worth discussing, and I'll plan a blog post on it soon. It is important that whatever
Breakout
[dc]I[/dc]f you are a discretionary trader, you might also consider using some trading systems. In my published research, I publish three types of trades: purely discretionary trades (on both weekly and daily timeframes), a pullback system, and a longer-term trend following system. These systems were carefully selected
Chart of the Day
[dc]T[/dc]hough perhaps not properly a "chart" of the day, I wanted to share one of the several stock screens that we publish in my Waverly Advisors research. This screen highlights stocks that are consolidating with low volatility near the high (or low) of their 52
Climax
Double, double toil and trouble Fire burn, and cauldron bubble. -Shakespeare [dc]B[/dc]ubbles seem to be the theme of the day. Headlines like "Why Stocks Are Undoubtedly Experiencing a Massive Bubble", "Nobel Prize economist warns of U.S. stock market bubble", and "Shiller