Thursday, May 24, 2012

Waiting for Panic In Equities

http://edegrootinsights.blogspot.ca/2012/05/waiting-for-panic-in-equities.html

Signs of panic in technology-heavy NASDAQ Composite Index often foreshadow tradable bottoms in equities. Statistically significant spikes in the TRIN, price relative to the trend, and pull/call help quantify and define it (chart 1). Once these signals have been generated, patient investors will wait for the emergence of positive divergences between price and energy before acting decisively

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