Most readers of this website have probably heard about the Turnaround Tuesday effect in the stock market. But does the day of the week matter if it’s a bull or bear market? Let’s look at how the different days of the week perform in bull or bear markets. Trading rules [am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’…
Here is a simple mean reversion twist in SPY that holds the S&P 500 just one day (from the close to the next day’s open or close). It’s an overnight trading strategy, the lowest-hanging fruit in the stock market (?). This article was initially published in 2013, and it’s about time we updated it. We…
We made a table that summarizes the best and worst trading days of the month. Because the length of the month varies from month to month (and some months have holidays), we made two tables: one from the start of the month and one that goes backward (N-days to next month). Trading Rules [am4show have=’p2;p3;p58;p59;p130;p138;’…
The ATR indicator is useful on its own and can be used to develop an Average True Range trading strategy. The Average True Range (ATR) was developed by Welles Wilder in the 1970s. In his famous book called New Concepts in Technical Trading Systems, published in 1978, Wilder also published the RSI and the ADX…
Williams %R was developed by the famous trader and tax rebellion Larry Williams, who has given names to several technical indicators. Last week we wrote about the WilliamsVixFix indicator, and today we are explaining the Williams %R trading strategy and how to calculate and use the indicator. Williams %R does work. In this article, we…
Mebane T. Faber, along with Eric W. Richardson, is a co-founder of Cambria Investment Management and serves as the company’s Chief Investment Officer. In 2009, they released a book called “Ivy Portfolio,” which outlines their investment strategy. Let’s take a look at Meb Faber Ivy Portfolio. The Ivy Portfolio is a globally diversified investment strategy…
Instrument/asset S&P 500 (SPX) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): The lowest volume over the last 10 days; and Ends on a 10-day high; and RSI(5) is higher than 70. Results Trading performance if exit after N-days…
Instrument/asset S&P 500 (SPY) Trading rules The trading rules of the edge read like this (please also backtest yourself – you might find a way to improve it): RSI(2) is above 90; and The close is below the 200-day moving average. The trading edge behaves slightly differently depending on the close in relation to the…
Today we will look at a strategy that saw the day of light nearly 60 years ago. The somewhat cryptic name is the Coppock Curve. What is the Coppock Curve strategy about? The Coppock Curve Strategy was devised by economist E.S.C. Coppock under a mandate from the Episcopal Church to find long-term investment opportunities. It’s…
How does war affect the stock market? Can we expect poor returns and increased volatility? Or is it a good time to buy when you hear the sound of cannons? Perhaps counterintuitive, history suggests that stock markets show less volatility during wars and geopolitical conflicts, and Nathan Rothschild’s famous quote “buy to the sound of…
