Long-time friend-of-Slope-from-Paris Serge Ferra (whose twitter feed is here) was kind enough to kick over the interesting chart below. He actually sent this to me yesterday, before eBay’s surge, which makes it an even more compelling short idea: (more…)
The use of correlation has been used in speculation for 100′s of years, no matter if its horse racing, bird racing or the stock market. While it is working it has the speculators attention. (more…)
W D Gann was a master at finding patterns in the past to guide the future.
W D Gann forecasters are following this chart:
Two patterns from the past with a correlation greater than 90% below. The more data in the pattern with a high correlation is more significant than short time frames, simply as they are rare.
…”In the long run commodity prices are governed by one law – the economic law of demand and supply”..
..”If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks”..
John (Jack) Bogle
There are times I think of dusting off my FOREX account again, since some really clean patterns ocassionally show up. One example is the New Zealand kiwi/US dollar cross-rate, which broke cleanly in 2008 and never looked back. We saw the same thing happen earlier this year, and I think the swoosh lower is just going to continue. (more…)
The last time I remember Microsoft shocking the market with disappointing earnings was early in April of 2000 (yes, these kinds of things actually stay stuck in my head). The stock slumped on huge volume, and it really kicked off the monster bear market in NASDAQ and the complete deflating of the Internet bubble: (more…)