Monthly Archives: September 2012

The Transfer of Wealth Path

Wall Street can be thought of as a wealth transferring mechanism. For example, investors transfer wealth to entrepreneurs in exchange for future returns. Hedgers transfer wealth to speculators in exchange for lower risk. But at the same time, uninformed speculators transfer wealth … Continue reading

Posted in Market Statistics | Tagged , , | Comments Off on The Transfer of Wealth Path

The VIX Illusion

In my opinion, most of what one reads about VIX and its relation to stock market moves can be attributed to common misconceptions and chart illusions and possibly to some misinformation campaigns where the non-technical investor is the target. The … Continue reading

Posted in Market Statistics, Technical Analysis | Tagged , | Comments Off on The VIX Illusion

The Impeccable Timing of QE3

The announcement of QE3 propelled S&P 500 passed strong longer-term resistance at 1440.14. In my opinion, in the absence of the announcement and the backing of the ECB the index would have made a short-term top or even would have started on a Fibonacci … Continue reading

Posted in Economic Analysis, Technical Analysis | Tagged , , | Comments Off on The Impeccable Timing of QE3

Never Pull the Trigger Unless You Know the RIsk and Reward

Everyone can use a fancy stock screener with dozens of technical and/or fundamental criteria and find a few charts that look good. It is quite possible that one will find charts that satisfy specific criteria every day due to the large number of … Continue reading

Posted in Market Statistics, Trading Strategies | Tagged , , , | Comments Off on Never Pull the Trigger Unless You Know the RIsk and Reward

Baltic Dry Index is Flirting With Panic Levels

What is the exposure of banks to the dry cargo shipping market? I do not know the answer but what I know for sure based on previous work in this area is that the collapse in the Baltic Freight Index is more … Continue reading

Posted in Economic Analysis, Technical Analysis | Comments Off on Baltic Dry Index is Flirting With Panic Levels

Forward Performance Report of Machine Generated Trading Strategies

Forward performance testing is considered the third and final stage before employing a system in actual trading. The first two stages are the in-sample and out-of-sample testing. This is a report for 6 systems that have been developed using Price Action Lab for 3 ETFS (SPY, … Continue reading

Posted in Price Action Strategies, Strategy Synthesis, Technical Analysis, Trading Strategies | Tagged | Comments Off on Forward Performance Report of Machine Generated Trading Strategies