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Historically, large daily gains have occurred along downtrends or at bear market bottoms. Large daily gains are rare during uptrends. This is maybe counter-intuitive but this is how the market has behaved up to this point. In this article, when the ...

Passive investing is 100% accurate because it follows price with no error. Anything other that passive investing requires “doing something” rather than “doing nothing.” Actions in markets require defining objectives. If the forecast is for higher prices, then doing nothing is ...

In this article we use a strategy to analyze a variant of the January calendar anomaly in large cap stocks. The results are interesting and suggest this market inefficiency may be present but under specific conditions. For the backtests in this ...

With a total of 75 new all-time highs, this year has been the second strongest in the stock market since 1941. Since 1941, the strongest year was 1995 with 80 new all-time highs and 34% return for the S&P 500. This ...

The Turkish Lira gained 19.4% on Monday, December 20, 2021, which is a 19-standard deviations event based on available sample in last 20 years. In short-term this is a significant move but in long-term it is irrelevant. The chart below shows ...

The sell side has been persistent lately in trying to convince investors that market breadth has deteriorated and only a small number of stocks are driving the indexes. The data show this is false. Possible motive of sell side is ...

The choice of proper metric for equity long/short but also cross sectional momentum algos is of outmost importance. Often an ensemble method could provide good results but dynamic selection is a more promising but also more demanding quantitatively. When developing long/short ...

The last ten trading days of the year have contributed about 1% to S&P 500 performance on the average. A backtest also confirms this. The chart below shows S&P 500 returns for the last 10 trading days of the year. Since 1941, ...

Fact check result: true but conditioned on details. Common interpretation is false. Read below for details. In last few weeks there have been numerous references to the claim that a large fraction of S&P 500’s year-to-date return has come from only ...

The ninth buy the dip chart formation of the year propelled the S&P 500 to new all-time highs on Friday, December 10, 2021. The number of buy the dip formations this year is highest since 11 that occurred in 2000. Although ...