* Jeff Pietsch at Market Rewind illustrates two ways of generating superior performance by rotating each week into the asset class that shows the greatest relative strength. A second illustration shows superior returns by rotating into the top two relative strength currencies from among an ETF group. By taking advantage of relative strength, the systems tracked by Market Rewind are able to capture momentum effects across markets. Very interesting idea for swing traders, as well as active, aggressive investors.
* Rob Hanna at Quantifiable Edges shows how a mechanical trading system can be built by examining different historical studies of trading patterns and synthesizing them into single trading signals. By aggregating different historical patterns, the system is able to find occasions in which edges in one are confirmed by others, providing high probability trade opportunities. Excellent extension of historical research.
* Rennie Yang of Market Tells has introduced an "intraday relative cumulative TICK" measure that compares where today's cumulative NYSE TICK stands relative to the average reading of the past 30 sessions. By comparing, say, 10 AM numbers today with the 10 AM numbers from the past 30 days, we can see if today's market is trading with greater or lesser buying and selling interest than recent sessions. In a recent post, Rennie shows how a pullback in the relative cumulative TICK preceded yesterday afternoon's selloff. Nice sentiment gauge.