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This V-Bottom in S&P 500 is Not the Most Impressive One

The current V-bottom in S&P 500 is not the most impressive one of the last three years and after these formations became prevalent due to the Fed providing support at key market levels. Here is why. Share

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The Long-Term Trend of Volatility is Up

Although the 1990s contributed to a decrease in the slope of the uptrend in volatility, the long-term trend is still up. Unless there is another reduction in the slope of this uptrend, either natural or engineered, stock market passive investing risks will … Continue reading

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RUT(hless) Massacre

The Russell 2000 index rallied 2.86% yesterday to close above both its 50- and 200-day moving averages. In the last 7 days the index has gained 6.2%, which translates to a massacre for technical head and shoulders and double top traders. … Continue reading

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Losses Mount for Russell 2000 Head and Shoulders Traders

In the era of social media, it is unlikely that anyone can profit from a widely talked pattern, like the head and shoulders in Russell 2000 and in its popular ETF, IWM. If you are not sure of what is happening, you … Continue reading

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A Significant Weekly Gain in S&P 500

The S&P 500 rose 4.12% this week, a gain that has occurred 84 times in the last 2,860 weeks since January of 1960, or with a frequency of 2.94% in the last 54 years. Since the 2009 bottom, weekly changes of more … Continue reading

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That Was Not a Correction But a Reversion to the Mean

The recent drop in stock prices was a normal reversion to the mean, as it is evident from statistics. On the other hand, the 2010, 2011 and 2012 drops were something more than a reversion to the mean, possibly due … Continue reading

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A Lesson For the Bears From 2007

Bears almost never get a top where they want it. During 2007, the S&P 500 fell below its 200-day moving average and then rose above it three times before forming a top and in the meantime it also made new highs squeezing … Continue reading

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