Category: Momentum Relative Strength
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Investor fear has been driving the stock market down
I like to observe the return drivers of price trends. Though I primarily focus on the direction of the price trend and volatility, I also consider what drives the price trend. Yesterday I suggested the… Read More
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What has changed? Global trends, volatility expansion and contraction, plus some rising interest rates
My focus is: What has changed? if I see no change in the direction of the trend of volatility, then we just go with the flow. Realized (historical) and implied volatility (VIX) has settled down… Read More
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The stock market has reached a short-term extreme as investor sentiment indicates fear
After prices have fallen, I start looking for signs of a potential countertrend and divergence. “Be fearful when others are greedy and greedy when others are fearful.” – Warren Buffett If you want to be like Warren Buffett, you’re probably enjoying… Read More
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The Death Cross on the S&P 500
I wonder when we’ll start hearing about the death cross again like we did in 2016. The S&P 500 Equal Weight signaled a death cross today. As with any trend following signal or any signal… Read More
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U. S. Sector Trends
Yesterday I shared my observations of the overall stock market in The Stock Market Trend. Here are my observations of U. S. Sector trends to see which sectors are trending, which sectors have experienced declining momentum, and where… Read More
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Earnings season is tricky for momentum growth stocks
Momentum stocks are stocks that show high upside momentum in their price trend. Momentum stocks are trending not only regarding their absolute price gains but also relative strength vs. other stocks or the stock market… Read More
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Growth Stocks have Stronger Momentum than Value in 2018
After a sharp decline in stock prices in February that seemed to shock many investors who had become complacent, the stock market indexes have been trying to recover. At this point, the popular S&P 500… Read More
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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
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Betting on price momentum
“Don’t fight the tape.” “Make the trend your friend.” “Cut your losses and let your winners run.” “These Wall Street maxims all mean the same thing—bet on price momentum. Of all the beliefs on Wall… Read More