Market Review and Trends
The market went on a dive the last time this indicator happens
By Data Science Investor  •  January 20, 2022
I wrote an article on how consumer spending could be used to understand the movement of the stock market. It was a lengthy piece explaining about RCD and RHS. RCD represents Invesco S&P500 Equal Weight Consumer Discretionary ETF. RHS represents Invesco S&P500 Equal Weight Consumer Consumer Staples ETF. You may check out the article here to understand why these two ETFs are used to understand stock market movement. In the article, I explained how a graph comparing the ratio of RCD/RHS value against its 70-day moving average for the ratio of RCD/RHS could be used to anticipate market movement. The green line represents the ratio of RCD/RHS, while the yellow line represents the 70-day moving average for the ratio of RCD/RHS. In the past 14 years, market crashes usually happen when the ratio of RCD/RHS falls significantly below the moving average value as shown below. Since May 2020, the ratio of RCD/RHS has never fallen significantly below the moving average....
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By Data Science Investor
This is a site to publish my findings and research which are based on data science to aid you in your decision making process for investments in stocks and property, particularly in the Singapore market.
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