As mentioned in the previous post, we do not have a lot of faith in the market at present. Many indicators are flashing red but stock markets continue to rally thanks to the backdrop of loose monetary policy.

Even so we will stick to our trading strategies and hope to find alpha in un-correlated opportunities. It should be another interesting week and non-farm payrolls could prove to be a big event.

Below are the setups we are watching this week: Read more »


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 »


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 »


Commodity prices continued to slip last week, the US dollar gained and stocks ended modestly higher. So far earnings have continued to beat expectations (albeit off a low level) but this is yet to translate into solid gains for the market. Overall, our picks did relatively well last week with healthy profits for BIIB and NSR. Read more »


Chinese shares are lower this morning with the Shanghai Composite Index sinking at least 6% overnight and taking the market back to it’s recent lows. Poor manufacturing data out last week will not have helped and traders will be concerned of volatility spilling over into European and US markets today. With July’s FOMC meeting and GDP numbers to come, there are plenty of potential roadblocks ahead. Read more »