Category: Quantitative Evidence-Based Rearch
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Renaissance Technologies, Considered the “Best Money Manager on Earth”, Uses Technical Indicators to Drive its Automated Trading Systems
Technical indicators get a bad rap among some groups in the quantitative trading profession, but many of the most famous profitable investment managers apply technical indicators to global markets. Renaissance Technologies, Considered the “Best Money… Read More
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Buying Climax Signals a Top in the Stock Market
There was enough buying climaxes in stocks this week to signal a short term top in the stock market. This week 596 stocks printed a buying climax, which is the most since Feb 2018. A… Read More
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If we’re going to see selling pressure become resistance, this is where it starts
Technical analysis is the study of financial market price trends. What’s funny is that technical analysis has evolved into now being called quantitative analysis. Technical analysis has long been a method of much debate, until… Read More
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Everything is Relative: Florida COVID – 19 Trend Update
“It doesn’t matter what we think about a trend, it matters what the crowd thinks about it, but more importantly, how they will respond to it.” – Mike Shell For a quick update on the… Read More
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In addition to the equity markets entering a higher risk level of a drawdown and volatility expansion, we now have a renewed risk of the scary COVID narrative driving more fear
People tend to overreact and under-react to new information. We observe it in the global capital markets more frequently than anywhere, and with immediate feedback. So, those of us who are adept at identifying and… Read More
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Investor sentiment and feelings can be data-driven, quantitative, applying the scientific method, supported by a mathematical basis for feeling and believing
Individual investors are notably less bearish now, according to the AAII Sentiment Survey. US Investor Sentiment, % Bearish is an indicator that is a part of the AAII Sentiment Survey. It indicates the percentage of… Read More
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The flaw of average in stock market returns
We apply a lot of probability and statistical analysis for investment management and also our wealth management and strategy. However, I do it with a complete system and framework that includes a heavy dose of… Read More
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Your technical analysis is no match for Trump Tweets!
Someone texted me this image this morning. Now that’s funny right there; I don’t care who you are! But seriously though, many people like to blame others for their reality. Most of the time, the… Read More
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Front-running S&P 500 Resistance
The S&P 500 stock index closed just -1% from its all-time high it reached on January 26, 2018, and hasn’t been that high since. It’s been in a drawdown that was as much as -10% and… Read More
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Investment management can take many years of cycles and regimes to understand an edge.
It takes at minimum a full market cycle including both bull/bear markets to declare an edge in an investment management track record. But we also have different regimes. For example, each bull market can be different as… Read More