From time to time I attend stock meet-ups and listen to members opine about how useless the IBD 100 lists are.  People just like to denigrate things without examining the evidence and these untruths tend to get passed on unchallenged.  Each Monday, IBD publishes a list  of the top 10 ... Read more

The banker J.P. Morgan was fond of saying: “I never buy at lows, I never sell at the highs, I play the middle 60 per cent.” Well, from our lens, we are well past that middle 60 per cent point of this bear market rally. At the lows in the equity market in March, the S&P 500 was de fa ... ... Read more

Dubner brilliantly writes on the Survivorship Bias using sports as the example. It is good and thus I will include even though he has to bring up the Bills losing AGAIN.Survivor Bias on the Gridiron - Freakonomics Blog - NYTimes.com: "Over time, therefore, the DJIA reflects a different reality ... Read more

Jared at Condor Options provides a Volatility Tracker of all sorts of instruments each week. Yesterday, he noted this. This week’s report is a little late, but after the close Monday I see little reason to change any of the comments below. The Dow Jones Industrials closed down 187 points, ... Read more

As I mentioned in various previous blog posts, (e.g. see here ), I believe mean-reversion strategies have been performing very well in the last year. Now here is an article (hat tip: Laurence) that provides concrete analysis to support this hypothesis. In fact, the author points out that most of ... Read more

GPI came across my trading desk early in the trading day.  I don’t just short a stock because it’s rising.  Shorting GPI takes skill in regards to the overall trend of the stock.  It’s simple psychology!  Basically understanding that previous owners of GPI were underwater ... Read more