Yesterday, we learned of a new report released by the International Monetary Policy (IMF) warning that a shock in Emerging Markets could “rattle” developed economies. This is merely the latest in a steady stream of news reports over the past few months with similar warnings. As I have been writing about since February, though, the […]

We are honored to announce that the Market Technicians Association (MTA) has awarded us the 2014 Dow Award for our paper entitled “An Intermarket Approach to Beta Rotation.” The full paper is now available to download on the Social Science Research Network (SSRN) (click here). In the paper, we reveal a Beta Rotation Strategy (BRS) […]

Breaking Down the Momentum Breakdown

With one trading day left in March, most investors who only follow the S&P 500 (SPY) would assume that it has been a relatively quiet month. The S&P 500 is currently flat in March and the high to low range in the index during the month is a very calm 2.7%. In fact, this is […]

Mean Reversion Still Exists

To say this was a big week for mean reversion would be understatement. US Small Caps (IWM), the most loved asset class in the world, traded lower each and every day this week. On the other side of the coin, Emerging Market Equities (EEM), the most hated asset class in the world, closed higher each […]

Conditions vs. Predictions

The S&P 500 continues to hit new all-time highs. This is bullish, we are told, as new highs are typically followed by more new highs. True indeed, at least until the last new high is reached; that last new high or “the” top is unquestionably bearish. The hard part, of course, is in sorting out […]