* Interesting evidence of momentum effects on a day trading basis; I'm currently applying the measures of buying and selling pressure as filters to improve this trade;
* A wise trader passes along this perspective on what options ratios are telling us;
* Here's a great exercise that will show you how easy it is to overfit backtests of data; see also this excellent paper on how to distinguish good, bad, and ugly backtests;
* There's evidence that tweets predict stock prices; it's interesting to see that IWM sentiment is quite high in the Stock Twits measure, though the Russell 2000 Index has recently underperformed; QQQ sentiment is also quite high at 70% bulls and 30% bears;
* Overvalued stock market? Excellent perspectives on CAPE ratio from Meb Faber; a sharp money manager (with a high Sharpe) also passes along this view of the CAPE from Brad DeLong;
* Abnormal Returns asks: Is the market for apps saturated? One of the more interesting trading apps is Google-funded RobinHood, which promises free commissions;
* Stock market correlations rise in times of market stress; might correlation regimes be an important sentiment measure? See also this view of correlation from China's market.
Have a great weekend!
Brett
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