Trader’s Narrative

There have been no updates for the past few days because I’ve been wrestling with my new browser and I’m extremely frustrated.
As “Papa Bear”, Bill O’Reilly might say if he were in my shoes, “F**king thing sucks! WE’LL DO IT LIVE!”
I’m frustrated, not just because I’ve been a loyal Firefox fan and supporter […]

This is a hilarious Alex cartoon about the many uses of quant jocks in investment banks:

A slightly better use of a quant jock’s talents would be to find correlating stocks. But what do I know?
For more, check out

The last time I revisited the Chinese stock market, it was in the throes of a major bear market. Fast forwarding to now shows things have only intensified with the Shanghai composite trading at less than half of its top in October 2007:

While we quibble about a percentage point here and there to see if […]

AAII
The retail investors as measured by the American Association of Individual Investor’s weekly sentiment survey are astonishingly pessimistic: 54% bearish.
To find a more gloomy view from the retail investor’s camp we’d have to go back to mid January when the AAII sentiment reached 59% bearish.
Back then I showed you this chart:

We have definitely seen 13 […]

Wednesday’s market performance took us down to a seldom seen place: only 10% of S&P 500 Index components closed above their 10 day moving average.

Chart from indexindicators.com
That is oversold but according to Lowry’s research, when the market reaches below 10% for this indicator, we have a setup for a powerful snap back rally that most […]