Time to buy?
Is it time to buy into the market, now that we’ve had a correction? I wouldn’t just yet if you are trading within time frames like I use (3-6 months). The market is likely to see a near-termed rally based on a mildly oversold situation (note the stochastics buy signal, and RSI’s mildly oversold level). [...] read more
Does the market climb a “wall of worry”?
The theory that stocks “climb a wall of worry” sounds good, but practical observation suggests that the theory is largely incorrect. If you’ve been following this blog for a while, you are likely aware that I am a big believer in sentiment studies. In fact, I wrote my research thesis on using sentiment indicators in [...] read more
Sell in May…
Seasonal patterns suggest to “sell in May, and go away”. This year, as always, I am selling a few positions in light of that discipline. I’ve also made an observation surrounding the U.S. Federal Reserve’s quantitative easing (QE) programs that may provide a bit more evidence to the “sell in May” strategy. As a [...] read more
Volatility may be back
As a diversion from the investment publications, blogs, websites and books I devour regularly, I sometimes read a bit of science. One of my favourite science authors is Richard Dawkins, a well known evolutionary biologist. One reason I like reading Dawkins work is because I see parallels between investors adaptively changing strategies for successful investing [...] read more
An interesting week
Last week, we saw quite a bit of choppiness largely due to worries over growth in China, along with some healthy profit taking from technically overbought levels. Alcoa started earnings season on a positive note, as did major US financials JP Morgan and Wells Fargo. Despite the decent start to the Q1 earnings season, the [...] read more