The market signal, named for a German airship that caught fire and crashed 69 years ago in New Jersey, appeared in April when unusually large numbers of stocks reached both one- year highs and lows as prices climbed. Since then, the Standard & Poor’s 500 has fallen 2.2 percent, including a 1.9 percent loss last

You might be wondering why we need to take a detour to discuss The Sentiment Cycle. Surely mechanical trading is designed to do away with emotions, right? Yes, a good trading system helps us stay the course and do the right thing. It prevents us from chasing performance, from loading the boat at the top.

I don’t ever recall a plunge of this magnitude in such a small duration. Any word other than crash does not do it justice. Look at the bar for this month. Now there’s a new definition for confirmation after the harami spike pattern that formed in May and June! The only comparable chart is the