Tag Archives: SPY

A New Self-Fulfilling Prophecy

I was still in graduate school when the self-fulfilling prophecy of the 200-day moving average was forged by financial media. After nearly 30 years they have not changed the narrative. Maybe it is time for a change and I have … Continue reading

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S&P 500 Most Oversold Since September 2001

According to our overbought/oversold indicator (a variant of RSI) the S&P 500 index is now most oversold since September 2001. Note that a 22% gain followed after the oversold conditions in 2001 before the bear market resumed.

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“Turnaround Tuesday”

Some people we follow in Twitter who have been trading for a long time often talk about “Turnaround Tuesday” if Monday is a down day in the stock market. Below is the analysis that shows if this is a true … Continue reading

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Leveraging the Performance of a Weekly Mean-Reversion Strategy

A Market Signals subscriber from beautiful Brazil inquired about the possibility of using a leveraged ETF in place of SPY ETF, or even account margin, for boosting the performance of our MRSPYW weekly mean-reversion strategy. Below is our analysis.

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Let’s Trade Ripple

Ripple (XRP) has gained about 120% in the last two weeks due to announcements that the company will be launching soon their settlement system, called XRapid.

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Are Trading Strategies Based on the RSI2 Random?

The Relative Strength Index is a popular indicator for developing short-term long-only strategies but careful analysis shows that its performance depends on price action dynamics and as a result ex-ante parameter selection is hard or impossible.

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