Category Archives: Market Statistics

Lessons From The October 1987 Stock Market Crash

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.

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False or Irrelevant Claims About The Markets A Growing Trend

False and irrelevant information about the markets dominates social media because most people are probably unwilling to share valuable information.

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Extremely Low Volatility Is Not A New Phenomenon

In the last three days the S&P 500 has moved less than 0.33% overall but this has also happened a few times in the 60s and 70s. Extremely low volatility in stock market indexes is not a new phenomenon but its … Continue reading

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There Are No Perpetual Trends

The U.S. equity markets are in their ninth year of gains after the bottom of the financial crisis in March 2009. On a quarterly basis, the S&P 500 has been up 80% of the time with only seven losing quarters in … Continue reading

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The Irrational “Buy The Dips” Meme

Yesterday was the perfect “buy the dip” day in the U.S. stock market. The S&P 500 opened about 0.5% below its previous low but closed nearly 0.1% above last close. But all this infatuation with “buying the dips” in social … Continue reading

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Stock Market Autocorrelation Mess

Negative autocorrelation is not necessary for a major top but when it becomes significant and keeps increasing it may be a warning sign. This is the case this month.

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