Category Archives: Technical Analysis

Momentum And Chart Traders Clash Over Market Direction

Chartists see an ominous top formation in SPY but momentum traders rely on a recent bullish golden cross. Is there any way to know who is right and who is wrong?

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There Is No Head And Shoulders Pattern in SPY

There are many posts in the blogosphere and social media in the last few days about a head and shoulders top formation in SPY. There is no such pattern formation.

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Two Bubbles Burst

Bubbles in solar and biotech burst, despite some bullish calls.

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SP500: The Most Important Trendline Of The Last Seven Years

This is the most important trendline in the S&P 500 chart in the last seven years. A break above this trendline may mark the beginning of a new uptrend. A failure to break above the trendline could be a sign … Continue reading

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Hedge Fund Crowding and Mean-Reversion

The odds of another stock market correction are high because price action remains persistently mean-reverting. One reason for the mean-reverting price action is “hedge fund crowding”, as Steven Cohen argued recently.

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Financial Media Intimidation Effects

Journalists do their job and investors and traders should do their. Market participants should not feel intimidated by post hoc market analysis because that may lead to spasmodic reactions and losses. Doing own homework is of paramount importance.

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S&P 500: Death Cross Traders Squeezed Out. Now What?

The 50/200 golden cross in S&P 500 yesterday marked the end of a short squeeze in the stock market that started with the low of February 11. The losses of shorts in S&P 500 from the 50/200 death cross on … Continue reading

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