Monday, March 09, 2015

New Views for Launching the New Market Week

*  As you can see from the chart above, Friday saw a huge expansion of stocks closing below their lower Bollinger Bands (raw data from Stock Charts).  Since early May of 2014, when I first began collecting these data, those large expansions have generally led to further price weakness in the near term.  Specifically, there have been 22 occasions in which we've had 200 or more NYSE stocks closing below their bands.  Over the next three trading sessions, SPY has averaged a loss of -.95% (6 up, 16 down).  That is notable weakness, considering the general period has seen rising prices.  Indeed, all 22 occasions posted a lower daily close in SPY over the next three trading sessions.

*  Perhaps my most important post since returning to blogging.  I've found this to be the best predictor of sustained trading success--also a huge predictor of life success.

Red flags for investment strategies and other top reads from Abnormal Returns.

*  From Alpha Architect:  buy cheap stocks--and here's the best way to define cheap

A big week ahead in markets and a look back from SeeItMarket.

More on the art of learning from WindoTrader.

Dividend capture strategy and options screens from Options Samurai.

Have a great start to the week!