#1 FREE Swing Trading Strategy and Stock Picks for Day Traders
You Can SCAN Stocks, Forex and Futures for 33 Cents a Day? Start Your FREE 30 Day Trial NOW!
MarketClub incl. Chart Portfolio - Smart Scan - Trade School - Streaming Chart Tools - News...
Free Trend Analysis
You Are Here: Home > Articles > Contributors > Quantifiable Edges Aggregator Suggesting A...
Quantifiable Edges Aggregator Suggesting A Short Bias
You Are Here:Home > Articles > Contributors > Quantifiable Edges Aggregator Suggesting A...
Quantifiable Edges Aggregator Suggesting A Short Bias
Jan 07, 2009
Print
Email
It’s been a long time since I’ve discussed the Quantifiable Edges Aggregator (click here for the July post and detailed explanation), and I’ve never posted a live chart of it to the blog, but I decided to do so today. As a quick refresher the Aggregator compiles all of the current short-term studies I have outstanding and consider “active”. Some of these studies are posted to the blog. Some only appear in the nightly or weekly subscriber letters. The Aggregator then produces a number which estimates how the studies collectively suggest the market will perform over the next few days. This is represented by the green line in the chart below.
The dashed line shows the average return of the S&P over the last few (in this case 3) days. The solid black line I refer to as the Differential line. It subtracts recent performance from recent expectations. When the Differential is negative it indicates the market has outperformed expectations over the last few days. A positive Differential indicates the market has underperformed expectations over the last few days.
As of last night’s close the green Aggregator was slightly below 0 and the black Differential line was squarely below 0. This means that the studies are indicating a slightly bearish bias over the next few days while the market has outperformed expectations over the last few days and is overbought. This is a configuration I will typically look for to enter short trades. A configuration to enter long trades would see both the green and black lines above 0. It’s important to note that the Aggregator is not a mechanical system. It is simply a graphical representation of my studies vs. the S&P 500.
The dashed line shows the average return of the S&P over the last few (in this case 3) days. The solid black line I refer to as the Differential line. It subtracts recent performance from recent expectations. When the Differential is negative it indicates the market has outperformed expectations over the last few days. A positive Differential indicates the market has underperformed expectations over the last few days.
As of last night’s close the green Aggregator was slightly below 0 and the black Differential line was squarely below 0. This means that the studies are indicating a slightly bearish bias over the next few days while the market has outperformed expectations over the last few days and is overbought. This is a configuration I will typically look for to enter short trades. A configuration to enter long trades would see both the green and black lines above 0. It’s important to note that the Aggregator is not a mechanical system. It is simply a graphical representation of my studies vs. the S&P 500.
You Are Here:Home > Articles > Contributors > Quantifiable Edges Aggregator Suggesting A...
Latest Articles
- US Workers Pay Continues to Suffer - First 0.0% Monthly "Growth" I Can Recall
- US Economic Week Ahead: The Calm after the Storm
- Update on 2009 Predictions
- Instead of Adopting Canadian-style Health Care, How About Learning from Its Banking System?
- Stronger Underwriting, Bigger Down Payments
- These Will Confirm
- Employment Situation: Job Anti-Growth - A Decade with Zero Net Added Jobs. 131 Million Nonfarm Payroll Employment in June of 2000. 131 Million Nonfarm Payroll Employment in June of 2009. 6,460,000 job losses since start of Recession.
- MrSwing Lite - Swing Trading Picks - 07-03-2009
- Head and Shoulders and Divergences on Daily SP500
- Athletes and Their Agents Don't Set Ticket Prices
- The Great Mancession of 2008-2009 Continues As A New Jobless Rate Gender Gap is Set in June
- Back to the Stimulus Debate: W, Timing, the States, and Baselines
-
Education
- Intro to Swing Trading
- Technical Analysis
-
Signals & Software
- SwingTracker
- Stock Scan PRO
-
Free Services
- Stock Charts
- Messenger
