I’ve been publishing VIX research since 1995. At the time the VIX was fairly new, and outside of Bloomberg, there were few mainstream vendors even offering data on it. Moving ahead 24 years to today, the VIX is widely cited, has picked up the nickname “The Fear Index”, and most traders and investors follow it… [Read More]
Connors Research Traders Journal (Volume 32): “Momentum, Mean Reversion, and Social Media: Evidence From StockTwits and Twitter”
For the past few years, there’s been on-going interest in whether Social Media, especially Twitter, can be used to predict short-term movement in stocks. At least one fund was created that I know of (after a good first month they got very quiet), along with a number of data and software services which now provide… [Read More]
Connors Research Traders Journal (Volume 31): New Podcast to Enhance Your Trading Results
I’d like to share with you a 45-minute interview of me done by Kirk Du Plessis and his excellent Option Alpha podcast. There were a number of topics discussed based on my new book Buy The Fear, Sell The Greed. I thought Kirk did a great job getting inside the book which quantitatively shows you where… [Read More]
Connors Research Traders Journal (Volume 29): How This Hedge Fund Has Achieved Over 30% a Year For Two Decades
Here is a fascinating article from Institutional Investor magazine on Joseph Edelman, a hedge fund manager who has achieved over 30% annual returns after fees for two decades. Edelman runs Perceptive Advisors, a multi-billion hedge fund which primarily focuses on one sector – the biotechnology sector. I’d suggest you read the article first and then we’ll together look at, and learn from,… [Read More]
Connors Research Traders Journal (Volume 28): Optimizing Your Position Sizing In Order To Increase Your Returns
I received a number of positive comments from the interview of Index Trader Sam Beckers, CTA, in the previous issue of the Connors Research Traders Journal. One trader was kind enough to share back an interview he thought would be of interest to me because it covered the very important topic of position sizing. A topic… [Read More]
Connors Research Traders Journal (Volume 27): An Interview With Professional Index Trader Sam Beckers
I’d like to share with you an interview done with money manager Sam Beckers, CTA, that a friend recently sent me (for the sake of disclosure I’m mentioned in it). The interview has a good amount of solid professional information in it as it pertains to finding trading edges, successful system development, and proper money… [Read More]
Connors Research Traders Journal (Volume 26): New Trading Opportunities Are On The Way
For good or bad, cryptoassets are here to stay. For experienced traders, they may provide an excellent opportunity in the future to trade for a multitude of reasons, including the fact that the majority of cryptoasset traders are retail speculators and quasi-gamblers from around the world. Most seasoned trading veterans know from experience that when… [Read More]
Connors Research Traders Journal (Volume 25): How To Make Better Trading Decisions
Trading psychology is not an area I usually venture into, but today is an exception. I’m a big believer in mental performance and even recommend three sources to enhance overall performance in my book, Buy The Fear, Sell The Greed. I’ve been fortunate over the years to have gotten to know a number of professional athletes,… [Read More]
Connors Research Traders Journal (Volume 24): Beware of Large One-Day Drops
After a market or stock has had a large one-day sell-off do you ever have the urge to jump in and buy because you’re anticipating a quick reversal? I know I have. Yet, it was never the holy grail as many people would have us believe. And many of those people who do believe it’s… [Read More]
Connors Research Traders Journal (Volume 23): VIX Futures as a Market Timing Indicator
************************ If you would like to read Chapter One of my new book Buy The Fear, Sell The Greed – 7 Behavioral Quant Strategies for Traders, please click here. ************************ I thought you’d enjoy reading this working paper on applying the VIX term structure to timing the S&P. Their concept of buying SPY puts and… [Read More]