Author: Harbourfront Technologies

Probabilities of a Recession in 2023

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months. It is visible in industrial production, employment, real income, and wholesale-retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country’s …

How Effective Is Technical Analysis?

Technical analysis is the study of past price patterns to identify market trends and trading opportunities. Technical analysts believe that the collective actions of all participants in the market, including buyers and sellers, producers and consumers, investors and speculators, etc., influence asset prices. By analyzing price data, technical analysts aim …

Investing During Inflationary Periods

Inflation is often thought of as a rise in the prices of goods and services. While this is true, inflation is actually an increase in the money supply. When there is more money chasing after goods and services, prices will naturally rise. This puts investors in a difficult position because …

Max Pain Theory in Practice

Max pain theory is a theory that suggests that the stock price movements are influenced by the options’ expiration. The max pain theory posits that the underlying asset of an option will move in such a way that it causes the most pain to the largest number of option holders. …

Determining Sovereign Credit Risks Using News Articles

Alternative data is becoming increasingly popular in the financial world. While some traditional data sources such as earnings and economic indicators are still relied upon heavily, alternative data is providing new insights that can help investors make better-informed decisions. There are a variety of sources for alternative data, including social …

Arbitrage Trading in the Cryptocurrency Market

Cryptocurrency is a digital or virtual asset that uses cryptography to secure its transactions. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be …