Category Archives: Technical Analysis

Another Failed Golden Cross Signal

This time the failed 50-200 golden cross was in TAN.  As soon as the golden cross occurred, the solar ETF plunged. Share

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Investors’ Paradise and the Uneasy Professors

The stock market is up, bond yields are down, volatility is down and small caps have rallied, cancelling their previous divergence with high caps. This appears to be an investors’ paradise. But for how long will it last? Or does … Continue reading

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Precision Crafted Russell 2000 Index

Yesterday the Russell 2000 Index tested the exact all-time high of March 2 at 1,243.33. The high precision test could be accidental but it could also be the case that these support/resistance levels are widely watched and respected. Share

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Stock Market Bull Trap is Highly Probable

I’m constantly amused by managers of passive index and smart beta funds going out of their way to confirm their bias about market direction. First they pick the market direction and then try to justify it by focusing only on … Continue reading

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Chartists and Trend-followers Need to Trade More Frequently Than Most Quants

Besides the fact that chart patterns are mostly random formations (see head and shoulders, double bottoms, triangles, flags, etc.), chartists also face some practical problems having to do with position size.  Trend-followers also have similar problems. This is because position … Continue reading

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SPY: Minor and Major Support Levels

Minor support for SPY is near 201 and major support is at 199. A V-bottom is possible given the past as a rate increase is not justified at this point. Share

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