Tag Archives: serial correlation

The Four Market Shocks

In the last 63 years there have been four major shocks after which volatility increased substantially. The last shock due to the financial crisis caused a volatility increase to new highs marking an alarming trend for the future. The increased volatility and … Continue reading

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Is the IBM Drop a Signal of a Coming Market Correction?

After a drop of 8.28% on Friday, IBM erased all of its gains for the year. Is this an advance warning that the same will happen to S&P 500 soon? Apparently, history tells us that similar drops have happened just before … Continue reading

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The Main Cause of Failure of Some Popular Technical Trading Methods

Indicator based trend following and classical chart patterns are two trading methods that were developed in mid 20th century using data from the equity markets mainly and worked well during an extended period of time in those markets due to the presence of autocorrelation. After 1998 things … Continue reading

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