razorfangius

Using Historical Averages Can Make Money in Stocks

It's funny to pitch a mean-reversion theory that involves eyeballing an oil chart and saying "this is too high", and then caveat by saying "I am NOT predicting where the price of oil is going to be."

So you are proposing that people use a strategy that you yourself have no confidence in?

Actually what do you even mean by averages? 50 day? 200 day? 5 year? 75 year?

The 75 year average price of oil is probably $4 a barrel ... the 50 day average is probably $130. So the price of oil is out of line compared to what??