Tag Archives: market timing

S&P 500 Overvalued Based on Price to Sales Ratio

In a recent article “Earnings-Price Divergence Always Followed by Negative Returns,” I noted that every extreme divergence (-20% or lower) between year-over-year corporate profits and equity prices in the past 50 plus years was followed by negative year-over-year equity returns.  … Continue reading

Share
Posted in Economic Indicators, Fundamental Analysis, Market Commentary | Tagged , , , , , | 1 Comment

Use Relative Strength to Confirm Trend Direction

In previous articles, I explained how to make market timing decisions with relative strength and how to use relative strength to identify market trends. Both of these articles used relative strength to forecast trend changes in the equity market and … Continue reading

Share
Posted in Market Commentary, Market Timing, Relative Strength, Security Selection, Technical Analysis | Tagged , , , , | 8 Comments

Combine Indicators to Identify High-Probability Reversals

I read about this indicator in an article titled “The DMI Stochastic,” which appeared in the January 2013 issue of Technical Analysis of Stocks and Commodities.  The article was written by Barbara Star.  In the article, Star combined two well-known … Continue reading

Share
Posted in AmiBroker Code, In-Depth Article, Market Timing, Strategy Development, Technical Analysis | Tagged , , , , , , , , , , | 15 Comments

A Relative Strength Market Timing Oscillator

I read about this indicator in an article titled “Roulette Wheels and Individual Stocks,” which appeared in the December 2012 issue of Active Trader.  The article was written by Richard J. Bauer, Jr.  In the article, Bauer used an innovative … Continue reading

Share
Posted in AmiBroker Code, COT Analysis, Futures, Market Commentary, Market Timing, Relative Strength, Technical Analysis | Tagged , , , , , , , , , , , , , , , , | 5 Comments

Recession Models and the Fiscal Cliff

Last week I introduced two new probit models to forecast recessions and the period between the market’s peak and trough associated with each recession – as defined by the National Bureau of Economic Research (NBER). In response to that article, … Continue reading

Share
Posted in Economic Indicators, Market Commentary, Market Timing, Recession Forecasting Model | Tagged , , , , , , , | Leave a comment

Housing Starts Only Bright Spot This Week

Housing starts were the only bright spot in another dismal week of economic data in the U.S. The following post provides an overview of the major economic releases from this week as well as an update on market conditions, including … Continue reading

Share
Posted in Economic Indicators, Market Commentary, Market Timing, Uncategorized | Tagged , , , , , , , , , | Leave a comment