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