Many chart analysts are describing this recent stock market selloff to the 2010. They claim that both declines are many due to the public’s psyche that the country’s leadership cannot fix the problem. Tom McClellan is a chart watcher, using history as a guide for the future, believing markets will behave in the same way when fueled by fear, greed, or uncertainty.

LEAN SIX SIGMA TEACHING POINT : In theory, I can see the chart watcher’s point. I would prefer more statistical analysis to prove the correlation of the two events. This is a great Black Belt Financial project. By statistically proving significant statistical correlation, one can attempt to gain arbitrage profits in highly volatile (variance) markets. Get out your SAS or Minitab since it may pay for itself with this analysis.

Article Link: http://www.marketwatch.com/story/the-deja-vu-selloff-is-reaching-a-crisis-bottom-mcclellan-2014-10-17

Gary Kapanowski – Lean Six Sigma Master Black Belt – Excelsior

The following blog is the opinion of Gary Kapanowski and Garykapanowski.com. It is the sole intent to broadcast this opinion from Gary Kapanowski and Garykapanowski.com exclusively and not to reflect on any other institutions or organizations associated with Gary Kapanowski or Garykapanowski.com.

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