Category Archives: Technical Analysis

“Technical analysis” looks at the markets from a purely mathematical and statistical view point. It has nothing to do with fundamental analysis. While we derive our long-term view from the latter, technical analysis can help determine medium-term strategy.

Amazingly, 89% of bull market performance can be explained by time

Stock market performance during bull markets is mainly (89%) explained by the duration of the bull market (defined as an uptrend without any pull-backs of 20% or more). To read the entire article, please click here.

Posted in Economy, Stock Market, Technical Analysis | 2 Comments

Technical analysis February 8, 2012

Time to take a look again at the technical picture of the S&P 500 Index, which seems to be in a nice uptrend, undeterred from anything: If only the volume was increasing (usually, higher prices are met with higher volumes … Continue reading

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Improving LIMTI

The efficacy of both technical and fundamental analysis is disputed by efficient-market hypothesis (which states that stock market prices are essentially unpredictable). If stock prices were unpredictable, my clients would be wasting money. “Technical analysis” tries identify patterns that help determine future prices. You … Continue reading

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What a week

Looking at asset class performance during the week August 1-5, 2011: Horrible week for the Dax index, US REITs (Real Estate Investment Trusts) and Emerging Markets. I had wondered why the Dax managed to perform so well despite Euro zone … Continue reading

Posted in Bond Market, Currencies, ETF, Gold, Stock Market, Technical Analysis | Comments Off

Gold and stocks love inflation, right?

In theory, stock prices react positively to inflation. You can explain that with the balance sheet effect: while debt remains same in nominal terms, assets gain in value (with the difference showing up in the equity position via net profit). … Continue reading

Posted in Gold, Stock Market, Technical Analysis | 1 Comment

Sector momentum table 2011-07-15

Each week we test major asset classes for the strength of their momentum. We check: is current price above 20-day moving average? is current price above 50-day moving average? is 20-day moving average above the 50-day moving average? does the … Continue reading

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Asset momentum table 2011-07-15

Each week we test major asset classes for the strength of their momentum. We check: is current price above 20-day moving average? is current price above 50-day moving average? is 20-day moving average above the 50-day moving average? does the … Continue reading

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Sector momentum table 2011-07-08

Each week we test major asset classes for the strength of their momentum. We check: is current price above 20-day moving average? is current price above 50-day moving average? is 20-day moving average above the 50-day moving average? does the … Continue reading

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Asset momentum table 2011-07-08

Each week we test major asset classes for the strength of their momentum. We check: is current price above 20-day moving average? is current price above 50-day moving average? is 20-day moving average above the 50-day moving average? does the … Continue reading

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Sector momentum table 2011-06-24

Each week we test major asset classes for the strength of their momentum. We check: is current price above 20-day moving average? is current price above 50-day moving average? is 20-day moving average above the 50-day moving average? does the … Continue reading

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