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Returns of Dow-30 And S&P 500 Diverge 10% Of The Time

Yesterday, the Dow Jones Industrial Average gained 0.17% but the S&P 500 fell by about the same amount. Divergences in the returns of these two indexes occur about 10% of the time in daily, weekly and monthly timeframes and they … Continue reading

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Risk-On But Mean-Reverting Forces Are Still Strong

High beta large caps are holding onto their gains after a recovery from significant losses earlier this year, while low volatility large caps show a mean-reverting tendency. The ensemble exhibits a fragile stability. The next more of speculators may be … Continue reading

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Longest Period in S&P 500 Since 1950 Without A Six-Day Win Streak

This coming Friday, October 28, 2016, will mark the longest period in S&P 500 since 1950 without a six-day win streak.

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Optimists Vs. Pessimists And The Pragmatic View

Microsoft’s stock gave a good reason to stock market optimists to celebrate yesterday: A new all-time high in the tech sector. But pessimists concentrate on the other side of the coin: It took the stock 15 years to regain its … Continue reading

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Announcing The Release of DLPAL v1.0

We are pleased to announce the release of DLPAL v1.0, a software program for short-term systematic and discretionary traders that can identify anomalies in price action via the use of proprietary unsupervised and supervised machine learning algorithms.

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Do Nothing Fund Management: Another Distortion That Will Disappear

Another distortion, courtesy of the low interest rate policy of the Fed, that is now way overextended and serves political goals is the “do nothing fund management.” Market timers are being replaced by accountants because fund management boards think the … Continue reading

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A Large Move Is About To Start in The Stock Market

Our indicator of the state of micro mean-reversion recently made a new all-time low in the daily chart of SPY with data since inception. A large move is about to start in the U.S. stock market. What is interesting is … Continue reading

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