Dancing with the Trend

Market Performance and Distributions

by Greg Morris

When I was doing research on my book, I found that many places that offered performance data often did so in a manner that was specific for what their intended message was or tied to what they were selling.  Having a strong understanding of market performance over time is important; not for making investment decisions, but for keeping that distance between your ears in check.  Sort of like golf, isn’t it?  This article is going to cover some performance charts on the Dow Industrial Average back to 1885.  In addition to that I think showing the distribution of Read More 

Dancing with the Trend

Linear Analysis, Alpha, and Beta

by Greg Morris

This article sort of ties in with the article I wrote about Modern Finance, “So What Is It with Modern Finance?”  I really questioned whether something like this belonged on StockCharts.com, but finally decided that if it gave just a few folks some information that they deemed as valuable, it would be worth it.  Sorry about the algebra, but I hope I will explain it so the formulae aren’t necessary.  When I explain these things I just type in my own definitions, a purist might challenge some parts for exactness, but the concept is the goal.  I’m sure you have heard the Read More 

Dancing with the Trend

Can Statistics Help You Invest Successfully?

by Greg Morris

I honestly cannot remember taking a course in high school or college specific for statistics.  I would imagine it was taught along with the many math and engineering courses I struggled through.  There was nothing like a draft card with a low number to motivate the successful completion of college in the late 1960s.  I can look across my office at the large bookcase and see 9-10 statistics books, plus a few forecasting (uses lots of statistics) books by Spyros Makridakis.  If you haven’t read any of Makridakis’ works, and you like this stuff, I strongly recommend him Read More 

Dancing with the Trend

Advance Decline Difference Indicators (Chapter 4, Part 1 - CGMBI)

by Greg Morris

We are progressing with the rebuilding of my “The Complete Guide to Market Breadth Indicators” book.  We are rebuilding the entire book using StockCharts.com tools and also including the indicators into StockCharts.com’s symbol list.  This article will cover the first half of Chapter 4, which deals with Advance Decline Difference Indicators.  Please keep in mind that this article only will show selected indicators from chapter 4.  Chapter 4 has 47 charts, so will be divided between two articles with this being the first article. Important Note: Read More