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.
From readtheticker.com
The three charts below review correlations between the NYSE 52 Week high low index, crude oil and previous market patterns of the Dow Jones index. The three correlations suggest that a market dip is due in 2014, how deep is any ones guess. The NYSE is made up of 2000 stocks unlike the INDU (only 30) or the SP500 (only 500) and as you can see a massive double top is in formation. The NYSE is a better representation of equity investing and should be watched closely.
NYSE 52 Week correlation
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and crude oil correlation
and correlation to 1800s Dow Jones
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Investing Quote…
..“In a narrow market, when prices are not getting anywhere to speak of but move within a narrow range, there is no sense in trying to anticipate what the next big movement is going to be. The thing to do is to watch the market, read the tape to determine the limits of the get nowhere prices, and make up your mind that you will not take an interest until the prices break through the limit in either direction.”..
Jesse Livermore
..”October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”..
Mark Twain
