Tag Archives: HD
This week was very good for weekly mean-reversion signals in DJIA stocks. Below are some details.
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.
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”.