It has now been 16 years since the horrific attacks on the twin towers. A day which changed the world and had a profound impact on millions of people. I remember very clearly what I was doing that day and I’m sure that you do too. It was a day that I will never forget.¹
It’s a fair assumption that managers will have a better insight into the financial state of the company they’re running than outside investors. A manager will act and make decisions that are based around what they perceive the outlook for that company to be. It’s also assumed that when a company makes a corporate action, […]
The world of social media has evolved rapidly in recent years. Traders and investors widely use various platforms both as a means of getting access to news and for trading ideas. Using social media as a trading indicator isn’t a new concept and the sentiment of tweets from Twitter has previously been shown to lead […]
In this article I look at some interesting new research from Haoyu Xu that can be useful for both momentum investors and reversal traders. The research finds that morning returns positively predict next month returns (momentum) while afternoon returns negatively predict next month returns (reversals).
The 200 day moving average is an extremely popular indicator among traders and trend followers. When a stock is above the 200 day MA, it’s said to be in an uptrend and when it’s below, it’s said to be in a downtrend. In this article I look at a strategy that buys upward trending stocks […]
In this article I will show that there is the possibility of a profitable edge when trading breakout stocks on high volume days. However, the edge requires an ability to foresee such high volume in advance. This is no easy task but the data suggests it could be an interesting line for future research.
Stocks don’t move in a single direction and if you have enough reason to believe that share prices are about to go down, then there are ways to profit from betting against them. However, betting against stocks is much trickier compared to going long and there are several factors to consider before you short.
Tuesday morning I sent out a tweet to say that we may have seen a top in the stock market. Today, the S&P 500 has just closed down by 1.20%, it’s biggest fall in over 100 days.
Last week saw the main stock averages continue their upward price run with the S&P 500, Dow Jones Industrial Average and Nasdaq all posting all-time record highs.
If stock picking was as simple as ticking off a few boxes it would be too easy. However, in the book Thinking Fast and Slow, Nobel Prize winner Daniel Kahneman suggests that simple checklists and algorithms are often more effective than complex models.