The “Double 9-to-1 Up Day” Signal
September 7, 2007 - Technical Trading
…double 9-to-1 up day events may reliably signal abnormal short-term returns, but designing a system to exploit such rare and unpredictable signals is problematic.
September 7, 2007 - Technical Trading
…double 9-to-1 up day events may reliably signal abnormal short-term returns, but designing a system to exploit such rare and unpredictable signals is problematic.
September 5, 2007 - Animal Spirits
…game-like trading-enabled visual abstractions of the stock market may encourage individuals to see the market as amusement and treat trading like “edgework,” wherein experiencing anticipated risk becomes an end in itself.
August 31, 2007 - Sentiment Indicators, Technical Trading
…weaknesses in the methodology of this study substantially undercut its conclusion that the average Bullish Percent across sectors is very useful for predicting stock returns.
August 30, 2007 - Investing Expertise
…the difference between expert and non-expert performance in investing and financial forecasting is small, making it difficult to discover the nature of financial expertise. Tests of expertise must be realistic.
August 27, 2007 - Short Selling
…fundamental analysis (especially accrual-related indication of poor earnings quality) helps valuation-motivated short sellers identify stocks likely to experience reversal of strong past returns.
August 24, 2007 - Buybacks-Secondaries
…in international markets, secondary share offerings reliably predict poor future stock returns, but share buybacks predict good future returns only for small firms.
August 22, 2007 - Animal Spirits
…evidence does not support a model of funds flowing predictably back and forth between stocks and T-bills as investors overreact and correct to perceived crises.
August 21, 2007 - Short Selling
…unusual trading by insiders helps isolate which short sellers know what they are doing, and vice versa.
August 16, 2007 - Momentum Investing
…successful momentum trading may depend critically on restricting consideration to stocks with the lowest total transaction costs.
August 15, 2007 - Investing Expertise
Do the experts who arguably should have the most informed opinions, finance professors, believe that the U.S. stock market is efficient? Do they invest in accordance with their beliefs? In their August 2007 paper entitled “Market Efficiency and Its Importance to Individual Investors – Surveying the Experts”, James Doran, David Peterson and Colby Wright seek… Keep Reading