Monthly Archives: October 2012

Power Laws, Rare Events and Other Misconceptions That Scare People Away from Stocks

There are no rare events in the markets. Crashes like that of 1987, flash crashes, and other events only appear rare due to a limited sample size. Allow enough time to the markets and a daily surge in Dow Jones equivalent … Continue reading

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Crude Oil Technicals Point to a Test of the July 2012 Lows

After a Fibonacci style retracement of 61.8% of the recent uptrend defined by the July low and the September high, crude oil technicals point to further weakness. However, readers should be aware that price action is determined by fundamentals and technicals only … Continue reading

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Will Late Gold Bulls Get Slaughtered One More Time?

It appeared to most traders that the game was over after gold failed to reach the $2,000 per ounce mark in September of 2011 but instead spectacularly plunged to find support just above the $1,500 per ounce mark a few … Continue reading

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Managed Futures Funds Are Scared of Commodities

There has been a tendency recently of large managed futures funds reducing their exposure to traditional commodities because of their higher volatility while increasing their exposure to stock index, fixed income and currency futures. This may end up being good for stocks … Continue reading

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