By EconMatters

It is important to know your market well, and identify which catalysts are drivers for supporting a Reversion to the Mean Trading Strategy that you can assign probabilities, timeframe and position sizing around in constructing a viable investing model. The most important factor in any Mean Reversion Trading Strategy is in controlling the Risk Element, i.e., what is your cutoff strategy for the trade.

Here are a couple of extraordinary letters from readers in response to the “SJW Pentagon” thread. Here’s the first:

I feel an urgent need to speak out in defense of the retired Marine, and to buffet his statement with my personal observations during my service with the U.S. Navy. I have slightly modified some information in order to protect my identity.

Authored by Mark St.Cyr,

NASA’s Hubble Space Telescope has captured some beautiful images of glowing auroras over Jupiter’s poles.  Just in time for NASA’s Juno spaceship which is due to arrive at the gas giant in the coming days.  CNN reports: “These auroras are very dramatic and among the most active I have ever seen,” said Jonathan Nichols from the University of Leicester, UK, and principal investigator of the study. “It almost seems as if Jupiter is throwing a fireworks party for the imminent arrival of Juno,” Nichols said in press release.

Several days ago we posted an update to our favorite trading strategy since 2013: namely betting on the stupidity of the "smart money" and going long the most underowned and hated names, while shorting the most owned ones (recall from September 2013: ""Presenting The Best Trading Strategy Over The Past Year: Why Buying The Most Hated Names Continues To Generate "Alpha""). As Bank of America confirmed three years later this past Wednesday, this indeed remains the best alpha-generating strategy. Here is what BofA's Savita Subramanian said: