Dancing with the Trend

January 2016

Dancing with the Trend

Fundamentally Flawed Analysis

by Greg Morris

Literally hundreds of millions of dollars are spent each year on the analysis of individual securities by Wall Street brokerage firms and independent firms (Zacks, Hoovers, Value Line, etc).  Most brokerage firms have a large staff of analysts, which make huge salaries, and are widely summoned to television shows each day for their opinions based upon their research.  Most will focus on a single industry so that their expertise will not be diluted; they are specialized, they are considered experts.  In fact, most of what makes up daytime financial television are the Read More 

Dancing with the Trend

Article Summaries 9-2015 to 11-2015

by Greg Morris

Most blog authors on StockCharts.com are writing about the current markets and do an exceptional job.   I do not write about the current markets as I want to share my experiences after 40+ years as a technical analyst.  Not only experiences with trading and investing, but model building and money management.  I also share the details of all the Master’s degrees I have – those expensive learning experiences that hopefully I learned something from.  Since I rarely go back into the archives of other’s blogs that I read, I wondered if that is common or not.  Read More 

Dancing with the Trend

Deficient Frontier

by Greg Morris

It is almost impossible to see any performance comparisons that not only show a benchmark, but also show a mix of 60% equity and 40% fixed income, known as 60/40 in the fund industry.  The Efficient Frontier is one of those terms that came from a theory developed decades ago on risk management.  Modern finance looks at a plot of returns versus risk, and of course by risk, they mean standard deviation.  This is the first mistake made with this concept.  As I have written about many times before using standard deviation as a measure of risk is flawed from so many angles Read More 

Dancing with the Trend

CGMBI-Non-Internal Breadth Indicators-Chap 11

by Greg Morris

This is the final article highlighting the chapters and indicators in my new second edition of The Complete Guide to Market Breadth Indicators.  This is a completely new chapter as I did not include non-internal breadth in the first edition; I stuck with internal breadth only.  Don’t ask me why.  I do not have an answer.  However, I will accumulate questions from readers via the Comments section and will write additional articles addressing those questions. A brief sales pitch to follow: Before we begin the review of Chapter 11 for the 2nd Read More