Tag Archives: serial correlation

Cryptocurrency Technical Analysis: Is it Effective?

The advent of cryptocurrencies has given rise to a new wave of aspiring traders that use technical analysis, mostly in its classical form, in an effort to profit from those markets. But is technical analysis effective in high volatility markets? … Continue reading

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Serial Correlation Of S&P 500 Total Returns

According to a Bloomberg article, the rare S&P 500 total return 12-month winning streak can be attributed to positive serial correlation. However, monthly returns appear to have negative serial correlation, i.e., they are mean-reverting.

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Overbought Stock Market Conditions Are Not as Persistent as in Past

After reading recent articles in financial and social media, one may get the impression that prolonged overbought conditions in the stock market are a recent phenomenon, usually attributed to central bank manipulation and herd behavior. These are false impressions according to … Continue reading

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Mean Reversion Is Your Friend

The popular rule “the trend is your friend” worked well in the past but during this year it has been challenged by erratic price action and swings. This could be a temporary phenomenon and momentum traders are not ready to … Continue reading

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Trend-following Woes [Premium Articles]

Arguments in support of trend-following usually rest on performance achieved by the CTA group in the 1990s. Recent performance of this group has deteriorated due to changes in market dynamics. Trend-following of equity indexes has performed better recently due to … Continue reading

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