Monthly Archives: January 2013

Longest Flat Period in NASDAQ-100 Ever

The 20-day flat trading period in NASDAQ-100 has resulted in a price channel with a height of 65.56 points, or a 2.42% difference between the lowest low and the highest high. This type of price action has never occurred in NASDAQ-100 before but in … Continue reading

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Stock Market Gambler’s Fallacy

Some traders base their trading decisions on the fallacy of the maturity of chances, also known as gambler’s fallacy. This fallacy is the expectation that the market will correct when indicators like the Relative Strength Index (RSI) assume extreme values. However, any extreme values of such … Continue reading

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Stock Market Euphoria and Overbought Conditions

Suddenly there is euphoria again. Pundit forecasts for Dow 20,000 are again making the headlines.  Some worldwide indices are now well overbought. For example, the FTSE-100 as of yesterday’s close was up 4.43% YTD with an RSI(14) in excess of 81, a … Continue reading

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Pattern of the Correlation Between S&P 500 and NASDAQ-100 After the 2009 Low

After the March 2009 stock market low, a new pattern of correlation between S&P 500 and NASDAQ-100 emerged. The basic features of this pattern are a higher correlation between the two indices during up moves than before the financial crisis and … Continue reading

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Longest S&P 500 Winning Streak and a Few Related Statistics

The longest S&P 500 winning streak lasted 14 days. The market peaked after 10 days and then declined for about 3 months. The 8-day winning streak shows historically a winning bias in the range of 60% – 80% for long positions with … Continue reading

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The S&P 500 and NASDAQ-100 Divergence Shows a Divergent Bias

The current pattern of divergence between S&P 500 and NASDAQ-100 had a positive bias in the 1980s and 1990s but after 2000 the bias is negative. During all 5 times since 2000 that this pattern has occurred, a stop-loss of 3% was triggered … Continue reading

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The Best AAPL Technical Analysis

A flood of AAPL technical analysis is currently underway. Thousands feel compelled to publish their own view of what has happened. In the social media, almost 9 out of every 10 posts are about AAPL. This blog has the best technical analysis though. … Continue reading

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Price Action Lab Alert for Friday, January 25, 2013

Starting with this alert the format has changed to save time. These alerts are for Price Action Lab registered users but demo users of the program can also verify them. Share

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