Stock Market Quant Trading and Investing

The parabolic SAR attempts to give traders an edge by highlighting the direction an asset is moving, as well as providing entry and exit points. In this article, we'll look at the basics of this indicator and show you how you can incorporate it into your trading strategy. We'll also look at some of the drawbacks of the indicator. Key Takeaways The parabolic SAR indicator, developed by J. Welles Wilder Jr., is used by traders to determine trend direction and potential reversals in price. The technical indicator uses a trailing stop and reverse method called "SAR," or stop and reverse, to identify suitable exit and entry points. The parabolic SAR indicator appears on a chart as a series of dots, either above or below an asset's price, depending on the direction the price is moving. A dot is placed below the price when it is trending upward, and above the price when it is trending downward. The Indicator The parabolic SAR is a technical indicator used to determ...

Netflix Inc. (NFLX) delivered first quarter global net subscriber additions of almost 15.8 million. A mind-blowing number of new subscribers for the company, considering Netflix had guided for 7 million subscribers when it reported results in January. The company saw a clear one-time benefit from the impacts of the coronavirus, with many countries issuing shelter-in-place guidance. Despite the big beat, the share may be heading lower. The massive subscriber growth in the first quarter may have come at the expense of future quarters. The company described it best in the shareholder letter, noting that some of the first quarter growth was probably pulled forward due to the lock-down effects of the coronavirus. As obvious as that may sound, it also means subscriber growth is likely to be weaker in the second half of the year. The stock appears to be reacting to that weaker outlook, trading unchanged in the after-hours on April 21, despite the big net addition beat. Interestingly, the ...

The fallout from the coronavirus has been rapid. The last few weeks have seen huge levels of volatility and the S&P 500 has dropped around 29% from it’s February peak. If you have read any of my previous updates you will know that I have been waiting for an opportunity like this for some time. However, I have not traded this crisis particularly well. I put a bit of money to work on the first dip around $2900 and then again around $2500 – too early on both counts. Not being an expert in viruses or epidemics, I cannot make any claims about the virus itself and my focus in this post is the reaction of major stock markets. A good explanation I’ve found on epidemics and exponential growth is this one on YouTube which I recommend watching if you are not already up to speed. My Take Looking at the situation now it appears that the market has scope to fall further as the economic fallout continues and the virus spreads. The next major level of support would be the $20...