Trader’s Narrative

The following is excerpted from Robert Prechter’s Independent Investor eBook. The 75-page eBook is a compilation of some of the New York Times bestselling author’s writings that challenge conventional financial market assumptions. Visit Elliott Wave International to download the eBook, free.
By Robert Prechter, CMT
…The natural tendency of people to apply physics to finance explains why […]

Everyone has been blown away by the force and intensity of the recent rally. To its power, consider one useful measure of breadth, the percentage of S&P 500 stocks trading above their short term (simple 10 day moving average). It is once again at an extreme. The rally has pushed this measure to the highest […]

The volatility of the stock market has been astonishing. In a short time we’ve witnessed a cluster of 4 days where the market volume was 90% or higher. This along with the multitude of Lowry 90-90 days has been unprecedented in recent history.
Here’s a very long term chart of the advance decline numbers for […]

I’m always on the lookout for new, interesting and little followed ways of measuring sentiment. Here’s a survey conducted by Yale (Prof. Robert J. Shiller) to measure how much confidence retail and insitutional investors have in the market being able to “bounce” higher after a decline of 3% (or more). The data goes back many […]

There are just a few more days left in the Hedge Fund Operational Due Diligence book giveaway. Follow the link and submit your email for entry into the draw.
Here are a few highlights from the past week’s reading list at news.tradersnarrative.com:

The Role of Naked Short Selling in Financial Crisis
Doug Kass: Unapologetically Bullish
Lex Luthor Needs a […]