When large institutions like hedge funds and pension funds trade, their decisions make a difference to the direction of prices and volatility according to AbleMarkets.com. First, the prices rise on days when the institutions buy throughout the day. Prices fall on the same day when the institutions sell during the day. Second, following institutional buying of a particular financial instrument, volatility decreases for several days with 99% probability, according to the latest research from AbleMarkets. The latest analysis uses institutional buying and selling activity, as a percentage of total buyer- and seller-initiated trades as measured by the AbleMarkets Institutional Participation Index. The index, developed usingRead More →

A New York Times article covering the latest Triple Crown horse race winner, American Pharaoh, noted that the horse was identified as having an amazing potential when the animal was only 1 year old. The prediction of success was made by a team of data scientists who estimated the horse’s performance by noting the size of the winner’s heart and other characteristics and comparing them with those of past race winners. On the future potential of the horse, the data scientists advised him, “to sell the house, but keep the horse.” Their prediction paid off – American Pharaoh won. The real victory, however, can beRead More →