Adjusting the Volume

Adjusting the Volume

  Stock prices like to travel in trends. And one of the core tenets of our risk management process is to follow significant stock price trends. But prices aren’t the only things that trend. We’ve also found that stock trading volumes have their own trends...
Shareholder Yield

Shareholder Yield

  A lot of the valuation metrics out there today paint a picture of a grossly overvalued stock market. Many of these metrics compare stock prices to things like earnings or sales. However, some valuation metrics—like shareholder yield—suggest that stock prices...
The More the Merrier

The More the Merrier

  This week’s indicator is based on the idea that the more stocks participating in a rally, the better. To find this level of participation or breadth, we use a technical tool called a 200-day moving average. When applied to the price of a stock, for example, the...
Earnings Momentum

Earnings Momentum

  Let’s say you have some money saved up, and you want to put that money to work as an investment. One option you have is to buy stock issued by publicly traded companies. The idea, of course, is that the shares of stock you buy will appreciate as time goes on,...
Long-Term Reversals

Long-Term Reversals

  In previous blog posts, we’ve talked about how interest rate trends affect stock prices. In general, we’ve found that rising rates tend to be bad for stocks and vice versa. But there are various lengths or maturities of interest rates. Some would argue that...