On Balance Volume
Is lack of volume significant? I have been noticing – and was recently contacted by a reader who had noticed the same thing – that volumes since early May are well down, markedly below average. The reader queried: does this mean a market top is happening? Is it a market top? Well, I wish I […]
Pain & Fear
Or Fear & Greed? Most books about the stock market think that fear and greed are the 2 main drivers of traders. I think not; I think they are pain and fear. Crashing out Sometimes I wonder why people are attracted to the stock market. After all, studies show that most people who try trading […]
Do Spreads Matter?
Alternatives to SPY I have had quite a few emails suggesting that there are alternatives to SPY, other ETFs that also mirror the S&P 500, and why don’t we use them? A good question. So what is the answer? Weighted by market capitalization I selected the 5 top ETFs (by volume) that follow the S&P […]
Reversion to the Mean
Reversion to the Mean. I was reading ‘The Little Book of Commonsense Investing’ and it was espousing ‘reversion to the mean’ – in other words, over time stocks will ‘revert’ to their trend. So, if the stock has been going up and then starts to go down, don’t worry, it will eventually return to its […]
Investing? Or Betting?
Is ITM Investing or Betting? It’s a nice change. I am reading Larry Hite’s book ‘The Rule’, and it has got me nodding and agreeing with him, something I rarely do while reading trading books. I am more likely to be interjecting with ‘rubbish’ or yelling ‘what rot!’, not going ‘yes, yes, that’s right’. Good […]
The AI Hype Cycle
Where is AI on the Hype Cycle? Many of you will know about the Hype Cycle, introduced by Gartner in 1995. It is a graphical representation of the maturity and adoption of technology. When I used to run IT departments it was a thing, and all new technologies were placed on it. You didn’t want […]