Mathematics & Markets – A Helicopter View of major stock market indices – Mar 4th, 2018

Mathematics & Markets –

A Helicopter View of major stock market indices – Mar 4th, 2018

 

Summary

Chaos theory mathematics allows for objective comparison between stock market indices, thus providing a helicopter view of the risks and potential associated to major financial markets

All indices point to potential medium and long term weakness

Russell2000 index shows elevated and significant risk

S&P500 index and Nasdaq100 show unfavorable risk/reward

Dow30 index shows short term favorable risk/reward

 

References

Applying Mathematics to Analyse Financial Markets – Part 1, Innovation

Applying Dynamic Chaos Theory to Analyse Financial Markets – Part 2, Good Investment Practice

A Helicopter View of major stock market indices – Feb 18th, 2018

 

A Helicopter View of major stock market indices

This publication elaborates on the idea to objectively compare major stock market indices with the help of chaos theory mathematics, thus providing a helicopter view of financial markets. First we will review the individual status of the S&P500 index, the Dow30, Nasdaq100 and Russell2000 indices. Then we will compare the actual status of these indices with the help of our decision criteria and try to draw a few objective ‘’helicopter level’’ conclusions.

Readers should be aware of two important characteristics of dynamic chaos theory mathematics, which has been described in previous publications (see references):

  1. All calculations use time dependent price-target and time dependent price-edge information
  2. All research is relative to the actual price of an asset at the moment of publication

Although the information remains valid for medium and longer term, it is obvious that this research loses its relevance over time when observing shorter time windows.

 

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