The Average Investor's Blog

A software developer view on the markets

The Weekly Update

Posted by The Average Investor on Nov 20, 2011

A very ugly week in the markets. The S&P 500 lost -3.69%, which put it below its 20-week moving average. The index was above this moving average since Oct 21, catching some of the October rally, but last week slammed this trade into losing territory, -1.61%.

The market was down 4 of the 5 trading days. The DVI indicator was short on Monday (winning) and Tuesday (losing) and wend long afterwards (losing). This resulted in a lost of only -2.8%.

The real loser was my ARMA indicator. Yes that’s right, it was even worst. It got the market direction wrong every single day of the week for a whopping -4.67% lost.

Both DVI and ARMA are long for Monday (check the right bar on the blog) and they seem to indicate that markets are entering into oversold territory.

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