Dancing with the Trend

November 2018

Dancing with the Trend

Infatuation with Morning Futures Fair Value

by Greg Morris

Infatuation: in·fat·u·a·tion Noun: infatuation; plural noun: infatuations An intense but short-lived passion or admiration for someone or something. I cannot begin to tell you how often I am asked about morning futures fair value to tell me if I’m going to invest that day based upon their proposed direction and/or level.  My response is always the same.  I don’t pay any attention to it because if there was any measurable effect, it is quickly dissipated in the first few minutes after the stock market opens. The infatuation with it stems from the onslaught by the financial Read More 

Dancing with the Trend

Thoughts on Technical Indicators

by Greg Morris

There is a myriad of technical indicators available to traders, and regardless of which indicators are used, blending them with other tools and good charting skills can produce a more in-depth picture of the price action.  For example, a stock may be approaching a support level defined by a trend line or previous price level (horizontal trend line).  The indicators signal a loss of momentum and possible reversal.  Other technical indicators show an oversold condition (caution with this term – see this article).  Considered together, full confirmation from the various Read More 

Dancing with the Trend

The Intellectual Void

by Greg Morris

I’m always trying to come up with new ideas for articles and don’t mind if I cross the line a little bit even if it offends a few – I just don’t want to offend everyone; certainly not all at once.  This one is going to do just that – I think.  My articles are rarely about current market action and more focused on the many lessons I have paid dearly for over the last 45 years.  I often say that I have multiple Master’s Degrees in what not to do. “You don’t need a weatherman to know which way the wind blows.”  Bob Dylan Read More 

Dancing with the Trend

Advantages and Disadvantages of Using Breadth

by Greg Morris

Consider a period of distribution (market topping process) such as 1987, 1999, 2007, 2011, etc. As an uptrend slowly ends and investors seek safety, they do so by moving their riskier holdings such as small cap stocks, into what is perceived to be safer large cap and blue-chip stocks.  This is certainly a normal process and one that can’t be challenged.  However, the mere act of moving from small to large cap stocks causes the capitalization weighted (Nasdaq Composite Index, New York Stock Exchange Index, S&P 500) and price weighted (Dow Jones Industrial Average) to move Read More