Bad statistics lead to bad decisions: the first day of the month effect
It is easy to calculate statistics, and it seems like, more and more, we are bombarded with market statistics from every side. The problem is that many of those statistics…
It is easy to calculate statistics, and it seems like, more and more, we are bombarded with market statistics from every side. The problem is that many of those statistics…
Here is something a little different today: a guest blog from David Blair, the Crosshairs Trader, who like all of us wears many hats. He is a trader, blogger, and…
There is a lot of talk about the "historic bull market" we are in. Fundamental analysts raise valuation concerns, while technicians point to a myriad of factors, usually making the…
Rhythm is important. Without the rhythm of the tides and seasons, there would be no life on Earth. When the rhythmic pulse of our heartbeat, breathing, or neural activity is…
There must be a thousand ways to lose money trading, and most of them are bad ways. Many traders, especially newer traders, are paralyzed by fear of loss. Many traders…
We are seeing a potential divergence in the performance of US and European stocks. European stocks are showing overtly bearish patterns, lead by clean breakdowns out of weekly bear flags…
A lot of people are focusing on the recent small cap underperformance today. Let's take a look at a little bit of history; here is a chart of the Russell…
We are awash in opinion and speculation. Every trader is writing blog posts or tweets about why the market will go up or down, and citing any number of factors.…
I've focused quite a bit here on quantitative aspects of trading and market analysis, and I've also just scratched the surface of the thorny subject of intuition. Today, I want…
US Stocks stand at an important potential inflection. Structurally, we have seen much support for US stocks to emerge as the global relative strength leader, should stocks break out into…
Last week, I wrote a post looking at the (apparently) impending Death Cross in the Russell 2000 index. In that post and the data examined, I found an interesting and…
One of the recurring themes in my work is that most of the technical tools most people use do not show an actual edge in the market--in other words, as…
Reader Thomas asks: have you ever written about regrets in trading? They seem to dominate mine...missing an entry, not taking the exit, etc Good question, Thomas, and, no, this isn't…
So, in doing my weekend work, I found what looks like a decent long trade in NYSE: STT. There are a number of supporting factors on this chart, but it…
This post continues the discussion on finding the Art in technical analysis. Read that first, and also this post, on bringing broad intuition into your experience. For quantitatively-inclined traders (such…
This is an important time in global markets. Equities are at a potentially important inflection, and short term noise may be misleading many players. Currencies have had some fantastic moves,…