Big malls and places like Disney give you a map showing you where you are in the mall or resort. My first chart shows us where we are in relation to the market’s recent support/resistance zones. The S&P broke support last Friday, and is now toying with my previously described final support zone. The chart Read More
Opportunities for mid-termed trades
Today’s blog is going to be short and sweet. Celebrate, for I shall avoid waxing eloquent, and get right to the point! Each of the 4 notations below are encapsulated in a capitalized summary sentence. Here goes: Reversals are often signalled by short-bodied candles. Short bodied candles occur when the market rises or falls Read More
My dad’s smarter than your dad.
Super brief look at the market before we get started on the main topic of today’s blog. Rumor has it that the markets have been volatile. If this rumour is true, we’d better take a look at the charts to see if the situation is dangerous. Below is a chart of the S&P 500. The Read More
It’s the end of the world as we know it. And I feel fine.
Rock band REM sang a truly great song called “It’s the end of the world (as we know it)”. Many of you have heard the song, I’m sure, but if you wish to marvel at how lyrist Mike Mills can carry off a fairly rapid flow of complex lyrics – click here. Today, I’d like Read More
Monday madness: Is today’s selloff a reason to panic?
I try to be as rule based as I can within a stock trading environment. Readers who have followed this blog consistently will know that we at ValueTrend held 22% cash over the summer based on some of those rules (Bear-o-meter readings, seasonality). We’ve also been following some buy-in rules in an attempt to sensibly Read More
Blood in the streets
During the Panic of 1871 in Paris, when everyone was selling, Baron Rothschild was buying. When asked about his buying decision, Rothschild apparently replied that “The time to buy is when there’s blood running in the streets.” As noted in my “Smell of Fear” blog, there are some quantitative factors that we can watch for Read More
The smell of fear
“To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude” John Templeton Years ago Leslie Nelson did a movie called “Naked gun: The smell of fear”. If you like slapstick comedy, you may enjoy it. Human beings, like most other mammals, are pre programmed to Read More
Bear-o-meter reading plummets
Do a quick search on the search bar for this blog and you will find plenty of entries under the Bear-o-meter. I try to read the compilation monthly. The last reading was on September 17th, where it had moved up from its August reading of “4” to a more bullish reading of “5”. Interestingly, the Read More
Tech and Consumer Discretionary sector rebalance, and what it means to you
The S&P technology sector, as reflected in the SPDR ETF “XLK-US”, was overhauled this week. It no longer holds some big players like Facebook, Google, Twitter and Activision Blizzard. So too was the S&P Consumer Discretionary index (XLY-US) – it lost big players like Netflix, Comcast and Disney. All of these stocks are being shuffled Read More
Interesting…
Regular readers of this blog will be familiar with my “Bear-o-meter” risk/reward compilation. Briefly, the Bear-o-meter is a compilation of some trend, breadth, sentiment and momentum indicators. They examine the S&P 500 from a longer termed risk/reward perspective. While the compilation’s readings can often signal market changes, it’s not really meant to be so much Read More