Be greedy when others are fearful: Evidence from a two-decade assessment of the NDX 100 and S&amp;P 500 indexes

Day, Min-Yuh; Ni, Yensen

doi:10.1016/j.irfa.2023.102856

Cited by 2 publications

(1 citation statement)

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“…Additionally, trading range breakout (TRB) trading strategies have garnered traction among traders in diverse financial domains, such as stocks, currencies, and cryptocurrencies, since these strategies aim to capitalize on price momentum post-breakout by pinpointing breakout levels. Despite their popularity [15], the suitability and efficacy of TRB regulations remain unexplored using the DJI 30 and NDX 100 indices, indicating the performance of two representative stock indices in the US.…”

Section: Introductionmentioning

confidence: 99%

Mastery of “Monthly Effects”: Big Data Insights into Contrarian Strategies for DJI 30 and NDX 100 Stocks over a Two-Decade Period

Chiu,

Huang,

Day

et al. 2024

Mathematics

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In contrast to finding better monthly performance shown in a specific month, such as the January effect (i.e., better stock price performance in January as opposed to other months), which has been extensively studied, the goal of this study is to determine whether investors would obtain better subsequent performance as technical trading signals emitted in a specific month because, from the investment perspective, investors purchasing stocks now would not know their performance until later. We contend that our analysis emphasizes its critical role in steering investment decisions and enhancing profitability; nonetheless, this issue appears to be overlooked in the relevant literature. As such, utilizing big data to analyze the constituent stocks of the DJI 30 and NDX 100 indices from 2003 to 2022 (i.e., two-decade data), this study investigates whether trading these stocks as trading signals emitted via contrarian regulation of stochastic oscillator indicators (SOIs) and the relative strength index (RSI) in specific months would result in superior subsequent performance (hereafter referred to as “monthly effects”). This study discovers that the oversold signals generated by these two contrarian regulations in March were associated with higher subsequent performance for holding 100 to 250 trading days (roughly one year) than other months. These findings highlight the importance of the trading time and the superiority of the RSI over SOIs in generating profits. This study sheds light on the significance of oversold trading signals and suggests that the “monthly effect” is crucial for achieving higher returns.

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Section: Introductionmentioning

confidence: 99%

Mastery of “Monthly Effects”: Big Data Insights into Contrarian Strategies for DJI 30 and NDX 100 Stocks over a Two-Decade Period

Chiu,

Huang,

Day

et al. 2024

Mathematics

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Navigating Energy and Financial Markets: A Review of Technical Analysis Used and Further Investigation from Various Perspectives

2024

Energies

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This review paper thoroughly examines the role of technical analysis in energy and financial markets with a primary focus on its application, effectiveness, and comparative analysis with fundamental analysis. The discussion encompasses fundamental principles, investment strategies, and emerging trends in technical analysis, underscoring their critical relevance for traders, investors, and analysts operating within these markets. Through the analysis of historical price data, technical analysis serves as a crucial tool for recognizing market trends, determining trade timing, and managing risk effectively. Given the complex nature of energy and financial markets, where many factors influence prices, the significance of technical analysis is particularly pronounced. This review aims to provide practical insights and serve as a roadmap for future research in the realm of technical analysis within energy and financial markets. This review contributes to the ongoing discourse and advancement of knowledge in this crucial field by synthesizing existing perspectives and proposing avenues for further exploration.

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Be greedy when others are fearful: Evidence from a two-decade assessment of the NDX 100 and S&P 500 indexes

Cited by 2 publications

References 60 publications

Mastery of “Monthly Effects”: Big Data Insights into Contrarian Strategies for DJI 30 and NDX 100 Stocks over a Two-Decade Period

Mastery of “Monthly Effects”: Big Data Insights into Contrarian Strategies for DJI 30 and NDX 100 Stocks over a Two-Decade Period

Navigating Energy and Financial Markets: A Review of Technical Analysis Used and Further Investigation from Various Perspectives

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