Following on from my post on the Dow following the events of last week comes this analysis by the WSJ on how investors react to bad news. I agree with the general sentiment however I think the 13.5% experienced during the Israeli invasion of Gaza owes more to the market being in the…
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In light of the appalling events of last week it is instructive to look at the markets reaction to such news and to see what can be learnt about the psychology of markets. In analysing what went on in the least two days of the week it is necessary to set aside ones emotions about…
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Interesting set of charts relating to the perceived fall in trading volumes during the recent rally in the US.
I dont really need to say much about this. And to put the strength of the US market into context this is the S&P500 monthly. However, there is always some idiot who thinks they know better than the market. Remember my view – the market is simply a voting machine, it votes on which…
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Well….I am still long the Dow, boring that it is. The interesting thing about markets at or around new highs is the emotional problems they seem to bring. Traders struggle with the notion of buying something that is higher than it has been in recent times simply because we have inbuilt cultural notions about what…
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Earlier this week I reinstated my longs on the Dow – the combination of a breakout to new highs and a low volatility is hard for me to resist and as fate would have it the market decided it would reverse. So what does this mean for this position? At present nothing, markets do…
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I was doing the Market Wrap yesterday for Talking Trading and in my usual look at markets I noticed that the arse had effectively fallen out of volatility in the markets I was looking at. I have dropped in a chart below which shows the 30 day HV of a variety of instruments, I have…
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