Tag Archives: trade

April 2013: Most Extreme Investor Leverage Since 2001 Bubble

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

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Posted in Economic Indicators, Fundamental Analysis, Market Commentary | Tagged , , , , , , , | Leave a comment

Non-farm Payroll (NFP) Model Forecast – May 2013

This article presents the Trader Edge aggregate neural network model forecast for the May 2013 non-farm payroll data, which will be released tomorrow morning.

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Posted in Economic Indicators, Fundamental Analysis, NFP Forecasting Model | Tagged , , , , , , | Leave a comment

Market Overbought – But Wait for the Trend Change

I introduced the concept of market breadth in a post titled “The Secret Weapon of Technical Analysis.” Based on current breadth readings, the equity market is overbought and due for a pullback.  However, trading against the trend has a low … Continue reading

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Posted in Market Breadth, Market Commentary, Market Sentiment, Technical Analysis | Tagged , , , , , , , , , | 4 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

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Posted in AmiBroker Code, In-Depth Article, Market Timing, Strategy Development, Technical Analysis | Tagged , , , , , , , , , , | 21 Comments

Modified Chartmill Value Indicator (MCVI)

I read about this indicator in an article titled “The Chartmill Value Indicator,” which appeared in the January 2013 issue of Technical Analysis of Stocks and Commodities.  The article was written by Dirk Vandycke.  In the article, Vandycke introduced an … Continue reading

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Posted in AmiBroker Code, In-Depth Article, Market Timing, Strategy Development, SWAMI Charts, Technical Analysis | Tagged , , , , , , , , , , , , , | 21 Comments

A New Recession Slack Indicator

I introduced the topic of recession forecasting in late October.  I have since developed several recession forecasting tools that I created by applying probit, logit, and neural network models to a diffusion index of economic and market-related variables.  This article … Continue reading

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Posted in Economic Indicators, Fundamental Analysis, In-Depth Article, Market Commentary, Market Timing, Recession Forecasting Model | Tagged , , , , , , , | 31 Comments

Price-Volume Ratio Identifies Reversals

Sometimes the simplest ideas work the best.  Before market peaks, shares typically transition from strong (institutional) hands to weak (retail) hands.  Before market troughs, shares usually move from weak hands back into strong hands.  Both of these scenarios result in … Continue reading

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Posted in AmiBroker Code, COT Analysis, In-Depth Article, Market Timing, Technical Analysis | Tagged , , , , , , , , , | 4 Comments

Active Trader Article: Option Strategies for Bull-Market Reversals

I have a new article in the January 2013 issue of Active Trader magazine.  I received the January issue in the mail earlier this week, so it should also be available at Barnes and Noble bookstores.  If not, it should … Continue reading

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Posted in Market Timing, Options, Strategy Development | Tagged , , , , , , , | 4 Comments