Dancing with the Trend

A Reading List

by Greg Morris

In the 1970s there were very few books on technical analysis.  Now there a many great books available in the field of technical analysis and finance.  However, I’m going to keep these lists short and focused.  These lists contains many other wonderful books on technical analysis, finance, and behavioral analysis, but if I had to pick a library of only four books, this is it – Getting Started List. Getting Started List Kirkpatrick, Charles D. and Dahlquist, Julie R., 2016, Technical Analysis, Pearson Education, Upper Saddle River, NJ.  Read More 

Dancing with the Trend

You Need to Understand What Market Breadth Offers

by Greg Morris

Early in writing these articles I talked a lot about market internals or market breadth.  As a refresher, I’ll review the basics and then offer an opinion on why breadth is so important. Breadth Components Breadth components are readily available from newspapers, online sources, etc. and consist of daily and weekly statistics.  They are: Advances, Declines, Unchanged, Total Issues, Up Volume, Down Volume, Total Volume (V), New Highs, and New Lows.  From one day to the next, any issue can advance in price, decline in price, or remain unchanged.  Also any issue can Read More 

Dancing with the Trend

Know Thyself IV

by Greg Morris

This is the fourth article dealing with cognitive biases that totally screw up your decision making.  The first article, Know Thyself, covered anchoring, confirmation bias, herding, hindsight bias, overconfidence, and recency.  The second article, Know Thyself II, covered availability, calendar effects, cognitive dissonance, disposition effect, and loss aversion/risk aversion.  The third article, Know Thyself III, covered Communal Reinforcement, Endowment Effect, Halo Effect, Overreaction, Prospect Theory, Self-Attribution, and Self-Deception. Most of my education on Read More 

Dancing with the Trend

Academia

by Greg Morris

I’m on record in my book, “Investing with the Trend,” and probably in this blog of stating that Financial Academia is nothing more than the marketing department for Wall Street.  When I do presentations about technical analysis and / or money management, I always begin with this slide: Slide A That is usually an attention getter.  I state that this formula is what Academia wants you to think modern finance is about.  I’ll get back to that at the end of the article. My formal education was in aerospace engineering.  Read More