Monthly Archives: January 2013

Longest Flat Period in NASDAQ-100 Ever

Posted on January 31, 2013 by Michael Harris

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

Posted on January 30, 2013 by Michael Harris

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

Posted on January 29, 2013 by Michael Harris

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

Posted on January 28, 2013 by Michael Harris

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

Posted on January 26, 2013 by Michael Harris

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

Posted on January 26, 2013 by Michael Harris

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

Posted on January 25, 2013 by Michael Harris

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.

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Price Action Lab Alert for Friday, January 25, 2013

Posted on January 25, 2013 by Price Action Lab

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.

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The Countdown for the Privatization of Apple Inc. May Have Just Begun

Posted on January 24, 2013 by Michael Harris

It may take a few years but eventually Apple Inc. may become a private company. Apple has a lot of cash, no debt and it is 68% owned by institutions. Those who will own Apple in the future will become major players in … Continue reading →

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Dow in a Mini-Parabolic Move

Posted on January 24, 2013 by Michael Harris

The Dow Jones Industrial Average is gaining 5.15% since the start of the year and DIA, the popular ETF that tracks the average, is gaining 5.27%. After January 16, the average and its ETF have been in a mini-parabolic move that brought them in overbought … Continue reading →

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