Category Archives: Market Commentary

Overcome the Odds

I heard something remarkable this morning that reminded me just how ill-suited the human brain is for making investment decisions. The inherent decision-making deficiencies that we all share are well documented in decades of behavioral economics and behavioral finance studies, … Continue reading

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Posted in Market Commentary, Market Timing, Recession Forecasting Model, Risk Management, Strategy Development, Uncategorized | Tagged , , | Leave a comment

Relative Strength Indicator Predicted Current Pullback

The weekly relative strength market timing indicator (RSMTI) signaled the current equity market pullback on January 24, 2014 when the indicator crossed below its 21-week moving average.  The daily RSMTI provides earlier signals than the weekly RSMTI and is more … Continue reading

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5 Near-Term Warning Signs

Despite the impressive V-shaped recovery in stock prices over the past two weeks, there is still serious cause for concern.  There are five near-term warning signs the equity markets must vanquish before the bulls can declare a short-term victory over … Continue reading

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Posted in Market Breadth, Market Commentary, Market Timing, Relative Strength, Technical Analysis | Tagged , , , , , , , , , , , , , | Leave a comment

Recession Model Forecast 12-01-2013

The following article updates the diffusion index, recession slack index, aggregate recession model, and aggregate peak-trough model through November 2013.

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

Market Breadth Divergence Update

On Sunday November 17th, I posted an article that identified headwinds for the equity market.  I explained that five independent leading indicators all pointed to near-term trouble for equities: a forming divergence in market breadth, an elevated CBOE Skew Index, … Continue reading

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Posted in Economic Indicators, Market Breadth, Market Commentary, Market Sentiment, Market Timing, Trade Analysis | Tagged , , , , , , , , , , , , , , | Leave a comment

Five Headwinds for Equities

I typically release new posts on Thursdays, but market conditions justified an accelerated schedule this week. Five independent leading indicators all point to near-term trouble for equities: a forming divergence in market breadth, an elevated CBOE Skew Index, a very … Continue reading

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Posted in Economic Indicators, Fundamental Analysis, In-Depth Article, Market Breadth, Market Commentary, Market Sentiment, Market Timing, Technical Analysis | Tagged , , , , , , , , , , , , , , | 2 Comments

Recession Model Forecast 11-01-2013

The following article updates the diffusion index, recession slack index, aggregate recession model, and aggregate peak-trough model through October 2013.

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

The Deadly Double Divergence

Would you be interested in an indicator that has signaled ten market tops since 1966 without a single false signal?  I read about such an indicator in an article titled “Double Divergences in the Advance-Decline Line,” which appeared in the … Continue reading

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Posted in In-Depth Article, Market Breadth, Market Commentary, Market Timing, Technical Analysis | Tagged , , , , , , , , , , | 2 Comments