Michael Moore Kills Capitalism With Kool-Aid
- Thread starter Trend Following
- Start date
hey now, MC, wheres your proof that trend following works??
Anecdotal EVIDENCE only/
Well, MC, here is MY PROOF that it does not work:
7 MILLION TRADES MC< 7 MILLION TRADES!!!! point your fingers at your managers who CLAIM to be trend followers to THROW guys like you off the REAL TRAIL. WHERE IS YOUR PROOF??? WHAT TESTING HAVE YOU DONE? YOU NEED TO QUIT NOW OR ADMIT YOUR WRONG
Consecutive Up/Down Days
We looked at over seven million trades from 1/1/95 to 6/30/06*. The table below shows the average percentage gain/loss for all stocks during our test period over a 1-day, 2-day, and 1-week (5-days) period. These numbers represent the benchmark which we use for comparisons.
We then looked at stocks that made exactly three consecutive up/down closes, all the way to stocks that made exactly seven consecutive up/down closes. Here's what we found:
Consecutive Up Days
Stocks that closed up exactly three consecutive days, on average,
underperformed the benchmark 1-week later (+0.14%).
Stocks that closed up exactly four consecutive days, on average,
underperformed the benchmark 1-week later (+0.02%).
Stocks that closed up exactly five consecutive days, on average,
showed negative returns 1-week later (-0.11%).
Stocks that closed up exactly six consecutive days, on average,
showed negative returns 1-week later (-0.30%).
Stocks that closed up exactly seven consecutive days, on average,
showed negative returns 1-week later (-0.40%).
As you can see, the statistics show even greater underperformance each step of the way.
This research shows that traders should avoid buying stocks that make consecutive up days and aggressive traders may consider short selling these stocks.
Consecutive Down Days
Stocks that closed down exactly three consecutive days, on average,
outperformed the benchmark 1-week later (+0.36%).
Stocks that closed down exactly four consecutive days, on average,
outperformed the benchmark 1-week later (+0.54%).
Stocks that closed down exactly five consecutive days, on average,
outperformed the benchmark 1-week later (+0.63%).
Stocks that closed down exactly six consecutive days, on average,
outperformed the benchmark 1-week later (+0.82%).
Stocks that closed down exactly seven consecutive days, on average,
outperformed the benchmark 1-week later (+1.06%).
http://www.tradingmarkets.com/.site/stocks/commentary/editorial/Consecutive-Up-Down-Closes.cfm
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So you were sitting around today looking for something clever to say...and this was it?
Why is there so much hatred towards both Michaels.
They just express their opinion, and happen to do in the way that makes them $. Anyone can try to do the same.
Now, while I do not agree with Moore, he does raise a good point. Capitalism is not great, but all other systems are even worse.
Naked capitlism is very bad, we are talking about tiny wages, long hours work weeks, child labor and so on. It needs to be regulated for sure.
Have no clue how to do it, almost no one does.
I guess what upsets a lot of people is the fact that they are not the ones on the top of current food chain getting all these benefits. I grantee that with few exceptions if anyone gets an offer to join the club of elite they would do it in a heart beat.
They just express their opinion, and happen to do in the way that makes them $. Anyone can try to do the same.
Now, while I do not agree with Moore, he does raise a good point. Capitalism is not great, but all other systems are even worse.
Naked capitlism is very bad, we are talking about tiny wages, long hours work weeks, child labor and so on. It needs to be regulated for sure.
Have no clue how to do it, almost no one does.
I guess what upsets a lot of people is the fact that they are not the ones on the top of current food chain getting all these benefits. I grantee that with few exceptions if anyone gets an offer to join the club of elite they would do it in a heart beat.