• Representativeness Bias: Easy Classifications
    Posted by on March 2nd, 2015 at 1:16 pm

    Share on StockTwits Representativeness bias is when you classify new info based on classifications that have worked in your past experiences. We derive meaning from […]

  • Confirmation bias: A dependable filter of objective information
    Posted by on November 21st, 2014 at 1:34 pm

    Share on StockTwits This series might sound like a crazy rant against using your gut instincts to ever make investment decisions. In fact, when we […]

  • Conservatism Bias: How to know what new information to focus on
    Posted by on November 20th, 2014 at 2:20 pm

    Share on StockTwits Intro Traditional finance famously makes lot of incorrect assumptions about how humans make decisions. They assume that we are fully rational, and […]

  • Sentiment Flip
    Posted by on November 5th, 2014 at 7:30 am

    Share on StockTwits In light of new highs and significant volatility the last couple of weeks, we wanted to take a look ahead at a couple […]

  • Pardon the interruption
    Posted by on October 24th, 2014 at 2:37 pm

    Share on StockTwits The chart below is from a report I ran on early in the week while watching, in mild disbelief, the market march higher. […]

  • Wait for the market to flex
    Posted by on October 7th, 2014 at 6:34 pm

    Share on StockTwits The jobs report temporarily sent the indices roaring, but under the hood the market lacked breadth. Today we gave back -1.5%. The […]

  • How SPY typically trades after a gap up/down on NFP report
    Posted by on October 2nd, 2014 at 7:23 pm

    Share on StockTwits The NFP report (Employment Situation) is released on Friday before the open and here’s what we know: EVERYONE will be watching the report. […]

  • Ebay Monster Gaps
    Posted by on September 30th, 2014 at 12:56 pm

    Share on StockTwits $EBAY announced this morning they’re planning on splitting off the Pay Pal division into a separate publicly traded company next year. The […]

  • Ghosts of Death Cross Past
    Posted by on September 23rd, 2014 at 7:45 am

    Share on StockTwits A “Death Cross” is a hilariously ominous name for a technical market condition where the 50-day moving average crosses below the 200-day […]