August 20, 2017

Archives for March 2011

Short-Term High-Probability, Mean Reversion Indicator – The Performance Speaks for Itself

The market continued to trade in a sideways fashion today as the broad index, S&P 500 (SPY) finished the day flat. Historically, when the market trades in a tight range, particularly over the short-term the more violent the move is outside of the range. There are several large gaps that have yet to close in several of the major market indexes, so I am leaning towards a sharp downside move, but of course it truly doesn't matter to the High-Probability, Mean-Reversion strategy. The strategy doesn't care about how the market performs, that is until an extreme overbought/oversold reading occurs. It is really quite simple. The performance speaks for itself. Chart courtesy of If you haven’t already, don’t forget … [Read more...]

Short-Term High-Probability, Mean Reversion Indicator – ETFs Remain in a Neutral State

The market remains in a short-term neutral state and has for quite some time, but as I always say, patience pays. The weeks when "sit on hands" is most appropriate is often the times when I see irrational trading occur. Remember, the less you trade the better. I can't tell you how many times I have seen subscribers leave because of a lack of trading which befuddles me given the fact that a strategy has proven its worth. This time is no different. Oh well. The Utilities sector (XLU) and China (FXI) are the two ETFs that are closest to a short-term overbought extreme, so of course I will be watching them closely. Believe me, I hope we get another bullish move tomorrow that extends the market and puts several of the ETFs I follow in a … [Read more...]

Short-Term High-Probability, Mean Reversion Indicator

Yes, I am finally back after another short hiatus. Here are the numbers. I will be back starting next week with the full report. If you haven’t already, don’t forget to sign-up for my Free 30-day trial. Also, for those of you who live on Facebook. You can access my daily info there as well. Just click on LIKE. Short-Term High-Probability, Mean-Reversion Indicator – as of close 3/03/11 Benchmark ETFs * S&P 500 (SPY) – 62.4 (neutral) * Dow Jones (DIA) 60.9 (neutral) *Russell 2000 (IWM) – 63.7 (neutral) * NASDAQ 100 (QQQQ) – 63.6 (neutral) Sector ETFs *Biotech (IBB) – 72.6 (overbought) * Consumer Discretionary (XLY) – 61.5 (neutral) * Health Care (XLV) – 75.4 (overbought) * Financial (XLF) – 52.3 (neutral) * Energy … [Read more...]