Preparing for the New Market Week

*  As we hover near new highs in SPY (blue line above), we see that stocks making fresh three-month new highs versus lows continue to lag.  I will be watching this measure closely to handicap the odds of further strength morphing into a fresh bull leg.  If that is in the cards, we should see a meaningful expansion of breadth.  Small caps were relatively weak after Friday's lift off, so not seeing breadth expansion yet.

*  If you train yourself for persistence and resilience in other areas of life, you build the capacity in trading.

*  Top readings from the past week from Abnormal Returns, including a look at divergences and possible growth scare in the economy.

*  Great demonstration of how easy it is to overfit backtests.  Also check out these seminal papers in financial mathematics.

*  What the Commitment of Traders report is telling us about positioning across asset classes from SeeItMarket.

*  Ten facts about SPY from New Trader U.

*  Four performance metrics worth tracking from Tradeciety.

Have a great start to the trading week!

Brett
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