“if it identified the very worst years, wouldn’t it be foolish to dismiss this as a valid indicator?”

Chart

Signs of capitulation and oversold conditions received a lot of attention as the week progressed

The S&Ps offer three good lessons that should not be missed.

Cartoons

Cartoon by XKCD Responses are pouring in from my post Computers are the new Dumb Money. A few of the quants I know told me the link was hitting their inboxes all day from friends and colleagues around the industry. A few desk traders I talk to had some anecdotes backing my assumptions up. One…

Ethan Harris, US economist at Bank of America Merrill Lynch, put this out to clients two days ago: As the markets continue to sell-off, an increasingly popular view among investors is that the Fed won’t hike until next year. Global growth is weak, Chinese policy mistakes have destabilized their markets and the US equity market…