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Long/Short Equity Results And Comparison of Cluster Performance

Yesterday was a good day for automated equity programs that execute trades at the open of the day since the S&P 500 ended flat after opening down about 1%. Below are the performance results of two long/short equity strategies that … Continue reading

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Lessons From The October 1987 Stock Market Crash

A few charts and lessons from the most dramatic crash in the history of the stock market, actually a 25-sigma event as shown below.

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“Dow is Overbought” Is More Bullish Than Bearish

The Dow Jones Industrial Average has been in overbought territory since the first trading day of this month and for a total of 10 days, according to a popular technical analysis indicator. But usually overbought conditions occur along uptrends.

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S&P 500/VIX Correlation And The Perils Of Visual Charting

Another indicator of market tops surfaced yesterday: When the 10-day correlation between the S&P 500 and VIX is positive, then this indicates a price top. The problem is that this does not work in practice unless one is just a … Continue reading

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Game Is Rigged

Some traders and investors complain in social media that the game is rigged. This is true but it can work to their advantage.

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Ignore Any Island Reversal Noise

The island reversal chart pattern should be totally ignored by investors but it is also an unreliable signal for short-term traders unless combined with other indicators. I include examples from a recent formation in NVDA and an older one in … Continue reading

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