I advise using the app/website as emails are often truncated due to images!
A little cross over chart here from the portfolio post that goes out separately each week from this index post.
Trigger 4 (T4) is a mean reversion trigger where a combination of timeframes momentum values have gone negative.
This is a mean reversion signal i.e. bouncy bouncy. Now depending on the stock and the regime impacts how high and how long.
I will go through it all with the important but too highly paid people who decided to give some of their $$$ to me…
The dot is Green
Trend is 751.90
SPY spends 82% of all trading days above this level.
Its all cool beans.
It is all the same chart so I can use all the same data. In the last 1761 trading days SPY has been above “trend” i.e. in green or yellow 82% of days.
We could probably include orange as the distribution is very similar, but we need a transition point.
In 1761 trading days price has never moved directly from Green into Red/Black there is always an intermezzo hangout in Orange.
KeepItSimpleSubstack
Hot Takes with Hank
Think pieces!
