Monthly Archives: February 2013

Naive Speculators Were Hit Hard

Speculators who rely on naive analysis of price action were hit hard yesterday. In the case of the DIA, HFT algorithms got the speculators both sides. In the case of TLT shorts were shaken out. This is how professionals make money … Continue reading

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Analysis of the Double Inside Day Pattern in GLD

The double inside day in the daily GLD chart shows short-term indecision from the part of market participants. This pattern is analyzed here for a significant directional bias.  

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S&P 500 Daily Returns Distribution and Statistics

Despite the fat tails and especially the one on the left side that includes one very rare event and a few other not so very rare, the distribution of S&P 500 daily returns is  as good as it can get in a … Continue reading

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Backtesting Robustness Index

In this post I introduce the general form of the Backtesting Robustness Index (BRI) I have developed and I give an example of its application to price patterns. This robustness index provides just another way of dealing with the notorious problems … Continue reading

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