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Stock Market Autocorrelation Turns Negative

After almost a year, the 1-lag, 252-day autocorrelation of daily S&P 500 simple returns has turned negative.

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Nasdaq Posts 8-Week Win Streak

Nasdaq posted its third 8-week win streak since the bottom of 2009. However, this pattern does not provide any clues about future direction.

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Price Action Lab Joins Quantopian Contest

Price Action lab has joined the Quantopian contest with a strategy developed by our software. The newly developed capability of code generation for the Quantopian platform was used to implement the strategy.

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Market Timers And Gambling

Arguments in favor of market timing usually rest on the existence of the momentum premium anomaly and empirical analysis that shows it can be captured with relatively simple strategies, such as moving averages and price rate of change. However, these … Continue reading

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The Best Stock Market Indicator Is Financial Media Competition For Clicks

The frequency of articles in the financial media and blogosphere with calls for a stock market collapse is often a good indicator of a bullish market. This year¬†there were numerous such articles about the Soros put, Marc Faber and Brexit. … Continue reading

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Is Technical Analysis Broken?

When major financial media sites make up patterns because they can find none to present their case of a bull market, then there is a problem. Fed policies and the financialization of all assets have had a negative effect on … Continue reading

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The Rational Insiders And The Irrational Speculators

Jeff Bezos, the Amazon CEO, just pocketed $756 million from selling a “boatload” of stock, according to Yahoo! Finance. The sale is a perfectly rational decision. The irrational decision is buying a stock that trades about 190 times trailing twelve … Continue reading

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