Many people post fancy charts and data points but often times I wonder if they have actual use. Recently, there is also a great infatuation with alternative data (myself included here). The question is – and always is – does this extra analysis actually help or is it just eye-catching…
As traders close the book on 2017, it is time to start looking forward to 2018. What’s in store for the stock market next year? To help answer this question, I put together a few quant studies. Heck, I even used holiday colors for the charts. The first chart shows…
There have been noticeable divergences between the S&P 500 futures contract and the Nasdaq futures contract over the past few trading sessions. Regardless of the narrative used by the media to explain these divergences one must wonder if this recent activity is a harbinger of things to come. Could it…
Much is made regarding price action and day type classification. To keep things simple, let’s consider four possible day type classifications for this article. We can have: Inside range Outside range Up range Down range These are all pretty self-explanatory and are simply defined by comparing the current day’s (or…
I am often asked what is the best market to create intraday trading strategies. There are maybe literally one million factors – both market related and personal – to answer that question, but one way to try and attack this question is to look at the amount of money each…
As summer trading (hopefully) comes to an end we all might be in store for a bit more volatility and an increased likelihood for some downward pressure on the S&P 500 (NYSEARCA:SPY) in the coming days. Historically we are entering a negative time of the year dating back to the…
Everyone talks about edge and every successful trader I know has one (most have a few trading edges or more). However, what does “edge” actually look like? The quest for your first trading edge or simply adding one to your arsenal can be a much easier task if you understand…
What is Turnaround Tuesday? Is it a Wall Street cliché, media company selling headline, or verifiable trading edge? Maybe all of the above, depending on its usage. But it has also been a simple trading edge over at least the past 15 plus years or so. Below you will see…
Can you trust a backtest? Below is a simple strategy that uses intermarket signals from the Japanese Yen to trade US 30 Year Bond Futures. It only has 2 rules for entry. The strategy produces fairly stable in-sample returns especially for being so simple. The in sample period is from…
The market is “overbought” or “oversold” are common phrases you will hear across the finance space. However, it is actually extremely rare for these conditions to be true. Today, we’ll attempt to show how trading rules can provide a better picture of the market while enhancing trading performance. First, let’s…