Monthly Archives: May 2012

Bond Bear Massacre in the Midst of Falling Yields

Posted on May 31, 2012 by Michael Harris

The 10-yr Note yield made fresh lows yesterday and the 30-yr Bond yield closed just three basis points above its October 14, 2011 low of 2.69%. Bond bears, some driven by fundamental misconceptions about who is in control of rates in the US and some … Continue reading →

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Price Action Lab Alert for Wednesday, May 30, 2012

Posted on May 30, 2012 by Michael Harris

This alert is about two short signals in a popular ETF for entry at the open of today and exit at the close of today.

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Machine Generated DIA Patterns and Trading Systems

Posted on May 27, 2012 by Price Action Lab

The steps are presented here for discovering price patterns in DIA (SPDR Dow Jones Industrial Average) historical daily data using the Price Action Lab search function, testing the results in an out-of-sample and then creating a trading system. It is shown that Price Action Lab can identify … Continue reading →

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HFT is Not the New Generation of Trading Systems

Posted on May 26, 2012 by Michael Harris

HFT (High Frequency Trading) is the last stage in the evolution of computerized algo trading, where the last frontier and variable to optimize is execution speed. HFT algorithms do not do anything more sophisticated than what pit traders, market makers … Continue reading →

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Lessons from a Former Trading Addict

Posted on May 26, 2012 by Michael Harris

I had to climb up a steep cliff to get service for my mobile phone. I had several bruises and cuts when I reached the top but full signal strength for my phone. I used quick dial to call my broker to place the order I was … Continue reading →

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Bears are Scared

Posted on May 25, 2012 by Michael Harris

Stock market bears are scared. I base this on the fact that the S&P 500 index made a short-term bottom above its 200-day simple moving average. I also suspect that a good percentage of the current stock bears are the bond … Continue reading →

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Price Action Lab Alert for Thursday, May 24, 2012

Posted on May 24, 2012 by Michael Harris

Actually, this alert will be about the alert I did not post yesterday. I will explain the reasons I did not do it, although as it turned out the result was positive overall.

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Accidental Precision or What?

Posted on May 23, 2012 by Michael Harris

The financial sector ETF that goes by the ticker XLF closed the day before yesterday and the day before that right at its 200-day moving average. Accidental precision or what? Self-fulfilling prophecy or a law of the markets can better describe this … Continue reading →

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Consistent Losers in the Markets Are as Rare as Consistent Winners – The Paradox

Posted on May 21, 2012 by Michael Harris

I will name this the “Fortune Reversal Paradox” or the ”Trading System Reversal Paradox”. The paradox says that being a consistent loser in the markets is as hard as being a consistent winner. The proof of this paradox is very easy and requires high school … Continue reading →

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Facebook Saved the PC Industry and Maybe the World Economy

Posted on May 21, 2012 by Michael Harris

I wrote about “The Real Value of Facebook, Sans Envy“ back in February, after the announcement of the IPO. There were many articles during that time questioning the value of FB and the fact that many people would suddenly become millionaires and some … Continue reading →

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