Category Archives for "ETFs"
November 4, 2013
- in ETFs , Mean Reversion by Cesar Alvarez
SPX Closes Above MA10 For 15 Days
As of Friday’s close, the SPX has closed above its 10 day moving average for 17 days. What does the market do when it finally closes below the MA10? Which S&P500 stocks do we want to focus on when it finally does?
October 1, 2013
- in ETFs , Rotation , Stocks by Cesar Alvarez
Which S&P500 stocks to focus on when the SPX has 5 higher closes
Rob Hanna had a good post recently; titled What the String of 5 Higher Closes Under These Circumstances is Suggesting . With mean reversion trading, you are expecting stock prices to snap back towards their mean, like a rubber band stretched too far. But, sometimes, that rubber band can be stretched so far that it breaks (and therefore, won’t snapback). For some time, I have been searching for how to tell when that rubber band is stretched so far that it is broken. Rob’s post had several key concepts that might help us to solve this puzzle and possibly even be the foundation of a stock strategy.
