Published March 17, 2023
The tumult over the past week+ in the banking sector has taken over financial markets. We are publishing two good overview articles of the action. Our view is simple: markets are prone to emotional outbursts swinging between fear and greed. Rather than get caught up in the emotions of the moment, we have long found it more profitable to distill market action down to a few simple inputs related to price and volume. Are market participants, in aggregate, buying or selling, and to what degree. Our models then take a position based on decades-long analyses of the price-volume data, a period incorporating very many emotion-driven markets, both up and down. (more…)