1. Fibonacci Retracement • Overview: Based on the Fibonacci sequence, this theory involves drawing horizontal lines on a chart at key Fibonacci levels (23.6%, 38.2%, 50%, 61.8%, and 100%) to identify potential levels of support and resistance. • Application: Traders use Fibonacci retracement levels to predict where the price might […]
Market
Market Theories and Analysis
Several theories and analysis have been developed over the years to predict stock market movements. These theories range from fundamental analysis to technical analysis and quantitative models. Here are some of the most popular stock market prediction theories: 1. Efficient Market Hypothesis (EMH) • Overview: Proposed by Eugene Fama, the […]
Benner’s Cycle 100 Years Of Market Prediction
The Benner Cycle is a theory developed by Samuel Benner in the late 19th century that predicts cycles of economic activity, specifically in commodity prices and financial markets. Benner was a farmer who turned to analyzing economic patterns after experiencing the effects of economic booms and busts in agriculture. His […]
Reason Why CEO Sells Shares
When a CEO sells company stock, it can happen for various reasons, not all of which are negative or related to the company’s performance. Here are some common reasons: 1. Diversification: CEOs often have a significant portion of their wealth tied up in their company’s stock. Selling some shares allows […]
Market Reaction And Interest Rate
As of August 8, 2024 the Federal Reserve’s interest rate is 5.33 %. The Federal Open Market Committee (FOMC) set the rate at 5.25%–5.50% in July 2024 and kept it unchanged from the previous rate increase on July 26, 2023. However, the U.S. market (S&P 500) plummeted and lost trillions […]
Reliable Recession Indicators
Accurately predicting recessions is a complex task, and no single indicator can provide a foolproof forecast. However, several indicators are considered reliable for signaling potential recessions in the U.S. economy. Here are some of the most accurate and commonly watched indicators:1. Yield Curve Inversion: Description: The yield curve plots interest […]
The Relationship Between Interest Rate and Market Price
The relationship between U.S. interest rates and market prices is complex and multifaceted, affecting various aspects of the economy and financial markets. Here’s an in-depth look at how changes in U.S. interest rates can influence market prices: 1. Stock Market Prices: Valuation: -Lower interest rates generally lead to higher stock […]
The Alchemy of Finance
The Alchemy of Money, written by billionaire investor George Soros, explores his unique perspective on financial markets and the underlying factors that drive them. It’s not a traditional investment guide, but rather a philosophical and reflective work that challenges conventional economic theories and offers insights into the dynamic nature of […]
Recession Is Right Around The Corner
One of the well-used recension detection leading indicators is the 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity. In the past, the indicator has been indicating when the next recission takes place very accurately beforehand. This can be seen in the chart below. <The 10-2 Treasury Yield Spread is […]
OTC Market Ave Return vs. My OTC Selective Stock Return
My trading strategy is to pick a specific stock that gives me a particular signal to indicate whether the stock is about to go up or go down. Theoretically, when a stock finishes going down and bottoms out, it would more likely go up, that’s when I would like to […]