Catching the Mega-Move

Catching the Mega-Move

  When big moves happen in the stock market, they tend to be global in nature. In other words, stock price momentum in one country can spill over into other countries, creating what we call a “mega-move” in global financial markets. To measure this dynamic, we...
Reversals

Reversals

  This week, I want to feature an indicator we’ve recently discussed on the blog. It’s a price-based indicator that measures reversals in the stock market. Specifically, it generates buy and sell signals for the S&P 500 index based on percentage reversals...
Valuing the Market

Valuing the Market

  Whenever there’s talk about what drives the stock market, it usually comes back to two main factors: earnings and what investors are willing to pay for those earnings. A common way to quantify this relationship is to look at something called a price-to-earnings...
Curve Inversion

Curve Inversion

  For this week’s indicator, we have a metric that measures the Treasury yield curve. This specific yield curve looks at the difference between the yield on a 10-year Treasury bond versus a 3-month Treasury bond. This is depicted as the orange line on the bottom...