Monthly Archives: September 2012

Low VIX Points to a Correction

Many things changed after the financial crisis in every aspect of life. Old paradigms have been replaced by new ones,  compatible with the new reality. Along these lines, I think that VIX serves now as a contrarian indicator . Although the … Continue reading

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Everything Revolves Around New York

When stock traders wake up in beautiful Sydney, in Australia, the local stock market direction for the day has been, for the most part, decided already by New York traders. This is of course frustrating and makes many to want … Continue reading

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Developing Mean Reverting Systems with Price Action Lab

In this post I will discuss for the benefit of Price Action Lab users how the program can be used to find trading systems with mean-reverting performance. The specific notion of mean reversion that will be used in the examples is that of … Continue reading

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MSFT Once Again Testing Crucial Support

This is the fifth time since last June that MSFT is testing its 200-day simple moving average. In general, the higher the number of testes in a given time period, the higher the probability that there will be a downward violation … Continue reading

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Is the Correction Over or There is More to Come?

US stock market indices have corrected since reaching overbought levels two weeks ago. SPY dropped 2.68% since its close of $147.24 on August 14, two weeks ago. The technical picture is a little interesting as it shows high probability for … Continue reading

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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

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EURUSD Technical Analysis

After a Fibonacci retracement of precisely 38.2% of the dollar rally that started in May of 2011,  EURUSD now trades between an important resistance level and weak support. Share

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Discovering Patterns that Have Been Profitable Across All or Most of Dow-30 Stocks

Developing the capability of discovering price patterns that have been profitable in an in-sample of a group of securities, like for example the Dow-30 stocks, was an ambitious project I started last year in the form of an addition to the … Continue reading

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