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

A reader who I will call Racer X sent me some numbers on the bell on Friday in regards to that SKF we had talked about. And the numbers Friday were even more staggering than these from last week. What's it all mean? Each share of SKF (or any equity ETF for that matter) could be arbed ... Read ... 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

There were 4 new highs and 188 new lows in my universe of 4,000 stocks on Thursday.  My moving averages are flat and the market is going back and forth.  It remains to be seen whether the current QQQQ short term up-trend will hold. I remain mainly in cash. ... Read the full post ... Read more

The more sensitive GMI-R rose to 3 (of 10).  82% of the Nasdaq 100 stocks rose, and 49% closed above their 30-day averages.  There were 11 new highs and 121 new lows in my universe of 4,000 stocks on Tuesday. Among the 11 stocks at new highs were 4 stocks on my IBD100 lists:  DLTR, ES ... Read more

9:32 PM ET – With the S&P 500 testing key technical support near the 815 area in the middle of the trading day, and the market not responding well to the ECB’s rate decision and subsequent comments by Trichet, one couldn’t be blamed for sensing the ominous palatable feelin ... Read more