Tag Archives: HD

An Excellent Week For Mean-Reversion

This week was very good for weekly mean-reversion signals in DJIA stocks. Below are some details.

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A Possible Leading Indicator Of Bear Market

A recent rapid decrease in the correlation of Dow Jones Industrial Average components with the index itself could be a leading indicator of a bear market as this has also occurred in the past around the 2000 and 2007 tops.

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A Reminder and Example About the Short-term Nature of RSI

I thought this is a good example because it illustrates how the RSI (Relative Strength Index) is a very short-term indicator and, in addition, reminds of the rule that “the market can stay overbought or oversold for longer than you can stay solvent”.

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