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This article will update the mean-reversion strategy that trades stocks in the Russell 1000. Mean-reversion setups and trades come in clusters, such as now. This means we often get periods with
Stocks moved into pullback mode the last few weeks. It started with QQQ peaking on July 19th and SPY peaking on July 31st. It is way too early to call these “major” peaks. At present, these are just short-term peaks because both ETFs are
This report updates the Trend and Momentum Strategy that trades 74 stock-based ETFs. This strategy went through a rough patch from January 2022 to May 2023, but rebounded the last two months
The weight of the evidence remains bullish for stocks. The Composite Breadth Model is positive (since March 31st), yield spreads show no stress and upside participation remains strong. SPY and QQQ remain in short-term
Today’s article introduces a rotational strategy that trades stocks. As the name implies, rotational strategies buy top ranked stocks and then sell when they drop below a certain rank. For example, buy the top ten and sell when they drop out of the top twenty. This
The weight of the evidence remains bullish for stocks. The Composite Breadth Model is positive (since March 31st), yield spreads show no stress and upside participation remains strong. The only short-term negative is actually a long-term positive.
This article introduces a mean-reversion strategy to trade Russell 1000 stocks. I will cover some of the key concepts behind the strategy and provide a sneak-peak at the equity curve. In contrast to the rotation strategy trading
The weight of the evidence remains bullish for stocks. The Composite Breadth Model is positive (since March 31st), yield spreads show no stress and upside participation continues to improve. We are seeing new highs in several tech-related ETFs, the Home Construction ETF and the Industrials SPDR.
The weight of the evidence remains bullish for stocks. The Composite Breadth Model is positive (since March 31st), yield spreads show no stress and upside participation continues to improve. The Retail SPDR is coming to life and the Home Construction ETF continues
The weight of the evidence is bullish because the Composite Breadth Model is positive and the 5-day SMA for the S&P 500 is above the 200-day SMA. We are also seeing some risk-on with Nasdaq 100 stocks, technology and housing leading the market.
High-Low Percent is the percentage of stocks making 52-week highs less the percentage of stocks making 52-week lows. The chart below shows High-Low Percent for the S&P 500, Nasdaq 100, S&P MidCap 400 and S&P SmallCap 600. This indicator turns bullish
High-Low Percent is the percentage of stocks making 52-week highs less the percentage of stocks making 52-week lows. The chart below shows High-Low Percent for the S&P 500, Nasdaq 100, S&P MidCap 400 and S&P SmallCap 600. This indicator turns bullish with a move above 10% and bearish with a move below -10%. The first indicator window
Today’s report will test the Trend Composite & Normalized ROC Strategy on stocks. We will first review the testing parameters and signals for the strategy. I will then test on stocks in the S&P 500 and three other indexes. The overall returns are positive, but the
Today’s article will show how Normalized ROC performs in a rotational trading strategy. This rotational strategy builds on the prior strategy by using the same indicators (Trend Composite, eSlope, Normalized ROC).
The percentage of stocks above the 200-day SMA increased for the S&P 500 and S&P MidCap 400. $SPX %Above 200-day SMA was below 40% last week and moved to 50%. $MID
This articles covers the indicators and signals for a trend-momentum strategy to trade stock-based ETFs. The Composite Breadth Model defines market conditions. The Trend Composite and eSlope120 are used for trend identification, and Normalized ROC delivers the momentum rank. We show performance metrics for this strategy and provide a signal table.
Large-cap techs are powering QQQ and the Technology sector, which in turn is powering SPY higher. The situation outside of large-cap tech is different because the S&P 500 EW ETF is actually down for the month. Despite underlying weakness in some breadth
The S&P 500 and SPY exceeded their early February highs with surges last week, but breadth failed to confirm and remains a concern. Namely, we are watching the percentage of stocks above the 200, 50 and 20 day SMAs. Large-cap semis
Even though the Composite Breadth Model is bullish, the market is as split as ever. The Trend Composite is positive for SPY and QQQ, but negative for the S&P 500 EW ETF, S&P MidCap 400 SPDR and Russell 2000 ETF. Within the S&P 500, large-cap techs are leading and keeping SPY afloat. I am wary because
We are making progress. After a big hiccup on Thursday, I reworked the strategy and will cover the basics in this article. Here are some of the changes. First, the strategy trades stocks in the Russell 1000 to capture more beta. Second, I tightened the volatility filter by requiring the standard deviation to be below 50%. Third, I added price,
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