Author Archives: ziggylines

Stock Indicators in Python

I have been fooling around with Python as a possible tool for technical analysis.  I coded a few of my favorite indicators.  The GitHub link is here. Bollinger Bands Keltner Channels RSI MACD ATR ADX Stochastics I don’t think I … Continue reading

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Homebrew Correlation Indicator

The CBOE index of implied correlation made the news recently, with a high of 72.  This index, JCJ, is not as well-known as the one for implied volatility, but the two are linked. Low correlation suppresses volatility, due to the … Continue reading

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Winter Solstice

The winter solstice, just passed, is the shortest day of the year. It marks not the depth of winter, but the onset. The seasons lag the sunshine, as shown in the chart below. The coldest days come five or six … Continue reading

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TrueCar Gap Play

Occasionally, my day job intersects with my passion for the stock market. Below is the Finviz chart of TrueCar. This company has great potential, and some challenges. I believe the selloff on last quarter’s miss was overdone. Even the downgraded … Continue reading

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Chartism Demystified

Technical analysis of chart patterns is so popular today, it’s hard to remember the scorn heaped on it by my professors at business school. This condescending remark is from Benoit Mandelbrot. Yes, the same Mandelbrot who discovered fractal scaling. The … Continue reading

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Streamlining Tax Rates with Z-Statistics

We ask a lot of our federal income tax system. Its stated purpose is to fund the government, but we also expect it to do something about income inequality. The system redistributes income, implicitly or explicitly, through tax preferences and … Continue reading

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190 Weeks without a Correction

It seems like pullbacks have been really small lately, so I whipped up a new indicator called Percent off Peak, and took a look at the history of corrections. The indicator simply ratchets itself up as new peaks form, and … Continue reading

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Momentum Based Balancing

Part two in a series A few months ago, I presented a novel method for balancing a widely diversified portfolio. By “widely diversified,” I mean all asset classes, foreign and domestic. This is to reduce inter item correlation. Here are … Continue reading

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QE Bulls Are Back

If you follow the market every day, as I do, you can observe two distinct groups of bullish investors.  This is hard to depict on a chart, but I am going to try.  One group responds normally to economic news, … Continue reading

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Levy Dispersion Update

I watch $OEXA200R on Stockcharts, which says that 74 of the S&P 100 are trading above their respective 200 day moving averages.  It is generally considered a bad idea to go long when this figure is below 65, or in … Continue reading

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