Monday, April 20, 2015

Resources for Traders and More to Kick Off the Market Week

*  Above is my intermediate-term measure of market strength (red) charted against the cash SPX going back to the beginning of 2014.  The strength measure takes the sum of 5, 20, and 100-day highs and subtracts the sum of 5, 20, and 100-day lows specific to the SPX stocks.  It then smooths this number with a 10-day moving average.  (Raw data via the excellent Index Indicators site.)  Note that the strength measure has been waning since late 2014 and has recently turned downward from a relatively low peak.  When strength has been above zero going back to 2012, the next 20 days in SPX have averaged a gain of +.86%.  When strength has been below zero, the next 20 days in SPX have averaged a gain of +2.34%. 

*  Here's a very important Forbes article on performance co-written by Ted Hayes, Ph.D.  It explains why the single most important thing you can do to improve trading is develop and implement a strengths-based performance framework.  Some excellent links to strengths-based tests and resources. 

*  What to look for in market bubbles and other great reads for the week from Abnormal Returns.

*  Here are some great resources for you quant types out there:  

-- A very impressive collection of market stats from Vic Scherer.

-- Great breadth data and an impressive query engine from Kora Reddy.

-- My long time source for breadth data, Index Indicators also has a query engine.

-- A new primer on quant analysis from Adam Grimes.

Have a great start to the week!