Category Archives: Market Statistics
This is nothing new and most experienced traders and investors know that large gains in the stock market occur more frequently along bear markets than along bull markets.
Many in financial social media like to frequently refer to correlations but know little about what they mean. I usually infer how serious is someone about finance and markets by the way they refer or treat correlations among other things. … Continue reading
Since 1960 there have been only six other occasions when the S&P 5oo had no two back-to-back gains in 27 days. Backtest results for a relevant strategy are also included.
This October has been one of the worst months for equities since 2010 with a larger than two standard deviations monthly loss of 8.8% based on data since 1960. Our long/short equity strategy has gained 2.2% during this month.
Another chart appeared in financial blogosphere with a an indicator that could be an ominous sign for the market. Specifically, there have been only five up days in the last 21 trading days and this is a rare signal that … Continue reading