Price Charts Can Be Misleading

Savvy market professionals know that, finance people know that, even some retail investors know that but the financial media continues to serve price charts to the public. Return charts paint a different story about the state of the stock market.

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A Rare Stock Market Pattern With No Easy Explanation

Yesterday the S&P 500 index gapped up 1.4% on the open but a good part of the gains evaporated during the day and at the close were reduced to 0.6%.  As always, the financial media had an explanation to offer.

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The Perils Of Naive Portfolio Allocation Schemes

Some books and articles suggest various passive or active portfolio allocation schemes for superior risk-adjusted returns. In most cases the allocations are based on hindsight. Even worse, the statistical significance of proposed portfolios that use ETFs is limited by available data history. Investors should be educated about the perils of hindsight bias.

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Market Analysis For Week Of Monday, June 20, 2016 [Premium Articles]

This weekly premium report includes a market recap with commentary, high probability setups in ETFs and Dow-30 stocks and analysis based on unique technical indicators and quantitative methods.

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Market Overanalysis Is Detrimental To Success

The more discretionary and quant traders try to analyze market price action, the higher the chances of failure. This may sound counter-intuitive because it contradicts the common belief that the more one tries to achieve a goal, the higher the chances of success. But this is not how things work in the markets.

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Absolute Momentum Woes

There are now two back-to-back golden crosses and two back-to-back death crosses of the 50-day and 200-day moving averages in S&P 500 that have generated losses. This is the highest number of consecutive losers in the last 66 years. Absolute price series momentum models are experiencing large losses after a period of relentless promotion.

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