Category: Actively Manage Risk
-
Trend following applied to stocks
A stock must be in a positive trend to earn a huge gain… A stock must be in a downtrend to produce a large loss… The common factor? the direction of the trend… That’s what… Read More
-
Stock market investor optimism rises above historical average
“Optimism among individual investors about the short-term direction of the stock market rebounded, rising above its historical average.” The AAII Investor Sentiment Survey is a widely followed measure of the mood of individual investors. The… Read More
-
Is the economy, stupid?
Many investment professionals admit they are unable to “time the market.” What is “market timing,” anyway? Wikipedia says: Market timing is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to… Read More
-
Global Market Trends
Looking at broad indexes for global macro trends, global stocks are flat for the year, bonds are down as much as 6%, commodities are recently trending up. At this point, U.S. stocks continue to look… Read More
-
What’s going to happen next? continued
The stock market is getting a lot of attention this past week since the global stock market indexes were down as much as -4% for the MSCI EAFE Developed Countries index to the most significant… Read More
-
What’s going to happen next?
S&P 500 has declined to the 200-day moving average. I don’t trade the moving average, but include it as a reference for the chart. More importantly, the stock index is also near its low in… Read More
-
Apparently there was more enthusiasm to sell
The U. S. stock market as measured by the S&P 500 declined -2.57%. The shorter-term investor sentiment measures suggest fear is driving the stock market. That may be a positive signal since investor sentiment gets it wrong… Read More
-
The enthusiasm to sell overwhelmed the desire to buy March 19, 2018
The enthusiasm to sell overwhelmed the desire to buy. The S&P 500 stock index closed down -1.42% today. Stocks trended down most of the day and at 2:35pm it was down -2%. As you can… Read More
-
Asymmetric force was with the buyers
In Asymmetric force direction and size determines a trend, I explained how the net force of all the forces acting on a trend is the force that determines the direction. The force must be asymmetric… Read More
-
Asymmetric force direction and size determines trend
In physical science, force is used to describe the motion of a push or pull. Newton’s first law of motion – sometimes referred to as the law of inertia. Newton’s first law of motion is stated as: “An object at rest stays… Read More