Friday, November 5, 2010

The Church of What's Working Now

The question is, "what changed in the mid-1990s that made this indicator work? Not the bull market/bear market change. 
Interestingly, it was the last time the Republicans swept into power. It was also the end of a bond market bear.

Your thoughts?

1 comment:

PD Quig said...

Low volatility / mean reversion on the left side of the chart means price hugs the 20 EMA. Be interesting to see what happens now that nobody but the Fed, PD's, and hedge funds are in the market.