An amazing parallel signaling market bottoms
Author: Michael Arold
Covestor model: Technical Swing
Looking at the last three stock market bottoms – including the most recent one- it feels like Mark Twain was wrong when he said: “History doesn’t repeat itself, but it does rhyme.” Repetition of this pattern is simply amazing – click to enlarge:
Source: StockCharts.com
There are three characteristics which played out almost the exact same way:
1) Duration – the entire process took around six months.
2) Failed test of the initial low, which also market the start of the rally.
3) Declining volatility during the entire process.
The chart above also shows very nicely how volatility has been clustered in recent years. Volatility clustering is a known phenomenon/market inefficiency and I’m tempted to incorporate that into my trading (shorting the VIX at cluster peek? Needs more research/work before I’ll implement it).
By the way, I didn’t play this structure well when it first occurred in 2009, which was the only year where my Covestor Model Portfolio underperformed the S&P 500. However, in 2010 and 2011 I got much more aggressive on the long side when this pattern showed up, which is one of the reasons why the portfolio is up about six percent in 2012 so far.
Covestor Ltd. is a registered Investment Advisor. Covestor Investment Management licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for investment models available upon request. Additional important disclosures are available here. For information about Covestor and its services, go to our website, Covestor Investment Management or contact Covestor Client Services at (866) 825-3005, x703.
Source:
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Lion’s Mane Mushroom
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, But it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes:
Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity.
Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins.
Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system.
Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome.
Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function.
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules. Today Be 100% Satisfied Or Receive A Full Money Back Guarantee Order Yours Today By Following This Link.
| Online: | |
| Visits: | 1,609,638,692 |
| Stories: | 8,168,274 |
Whistler Blowers, Insiders
