With markets down around 10% in 2015 it could be argued that this is not yet a true crash. Investors appear to be so conditioned to upward gains that they consider even a small correction as a major crash.
Yet, it is recent price action that experienced investors are most worried about and the omens are not good.
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Global stock markets are currently experiencing extreme volatility with the S&P 500 dropping almost -8% over the last four days.
Stocks have continued to fall in Asia and Europe this morning and there is no doubt that this shakeout is a serious one, with the potential to continue for some time. Read more »
2015 has not been an ideal year for stock traders so far. As you know, we have seen plenty of volatility in China, Europe and Emerging Markets. The S&P 500 has been trading in a choppy range for much of the year and is currently showing a year-to-date return of only 1.57%.
Our trend following system is currently ahead of the benchmark index by a healthy margin and this is based on various metrics of performance and risk. Read more »
In the classic trading book, Reminiscences of a Stock Operator, Jesse Livermore spoke a little bit about a professional gambler called Pat Hearne. Pat would treat the markets like a casino game (such as roulette, faro or blackjack) and his strategy was to make a series of calculated bets, always looking for small, sure wins. Read more »
Last week’s picks produced a marginal profit, with positive returns for our value pick Valero Energy and our short pick Nu-Skin Enterprises. Our short-term reversal pick Disney Inc. saw a small loss, though the stock is still a buy according to the system rules. Read more »
In this article I compare the profit potential from short selling stocks and buying stocks. I do this by testing a strategy that trades various stocks at random and then holds them for different periods. Read more »
Last week’s stock picks put in a mixed performance as stock market conditions remained choppy. Our Marwood Value pick put in a healthy run but overall returns were brought down by Apple shares, which continued to drop. Read more »
In this article I look at some moving average crossover strategies and I investigate which moving average crossover lengths are the most effective. Read more »