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Daily Commentary - Posted by on March 11, 2010

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Implications of High RSI(2) Readings

On Wednesday's session, and with respect to the SPY (SPDR S&P 500 ETF), Wilder's Relative Strength Index (RSI) for a 2-day period closed above 95 the sixth day in a row, and above 99 on the fourth consecutive session. With respect to the latter,

Studies - Posted by on February 14, 2010

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Evaluation of Momentum Oscillators

Due to the fact that when bloggers/the bloggosphere/traders are discussing and talking about the 'overbought' ('oversold') state of the market (betting on a short-term mean-reversion tendency), they are regularly referring to and utilizing J. Welles

Daily Commentary - Posted by on February 11, 2010

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President's Day – But Not For The Markets

In full compliance to historical probabilites and odds, US major market closed lower on last Monday's session immediately following a session where the SPY had posted an intraday low at least -1.75% below the previous sessions close, but closed posit

Daily Commentary - Posted by on February 6, 2010

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Recovery Days and Short-Term Outlook

US major market indices fully complied to historical probabilities and odds when the VIX had surged 20%+ on a single session in the past: The SPY (S&P 500 ETF) showed the expected intraday weakness (follow-through of Thursday's weakness), went up

Daily Commentary - Posted by on January 27, 2010

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SPY and MA Envelope

On January 17, 2010, I mentioned that although since 01/01/2009 the SPY always posted a higher close (than the trigger day's close) 4 and 5 sessions later (after the SPY’s 2-day RSI closed above 96), it was the first occurrence (since 01/01/2009) t

Daily Commentary - Posted by on December 4, 2009

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Jobs Report Friday (Friday – December 4, 2009)

I'm a bit busy these days with some private (building and moving into a new home in a couple of weeks) and business matters, so blogging (and Twitter updates) were (and will probably remain for a couple of days and weeks) light. I am sorry for any i

Daily Commentary - Posted by on November 28, 2009

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TRADING THE ODDS on Monday – November 30, 2009

On Thursday's session European indices (and futures on US major market indices) tanked on Dubai news (the ES E-MINI S&P 500 was temporarily down -3.75%), but although US major market indices closed sharply lower on Friday's half trading day, the