Daily Market Indicators

Charts on this page are intended for demonstration purposes. The updated versions are for subscribers only.

The 20-Day Momentum of the NYSE advance/decline line is constructed by subtracting the number 20 days ago from the one today. This positive or negative value is then plotted around a zero line. Because of the way it is constructed, the momentum line is always a step ahead of the price movement. If the Dow Jones is rising and the momentum line is above the zero line and rising, this means the uptrend is accelerating. When the momentum line begins to drop toward the zero line while the uptrend in the Dow is still in force caution is warranted because the uptrend is losing momentum.

Charts on this page are intended for demonstration purposes. The updated versions are for subscribers only.

The Smart Money Flow Index is calculated according to a special formula by taking the action of the Dow in two time periods: the first 30 minutes (dumb money) and the last hour (smart money). The value of this indicator lies in its comparison to the Dow - we want the SMI to perform better or worse than the Dow. Any non-confirmation indicates a change of the prevailing trend. It is a clear buy signal if the Dow falls to a new low which is not confirmed by the SMFI. But whenever the Dow makes a high which is not confirmed by the SMFI there is trouble ahead.

Charts on this page are intended for demonstration purposes. The updated versions are for subscribers only.

The Global Futures Time Premium Index is a sentiment indicator. The spread between the S&P 500 cash index and the S&P futures contracts (premium) shows high readings near market tops and low readings near market bottoms. The bold red lines on the chart below show you the futures contracts with the highest and lowest premiums of the last years on a 5-day moving average for comparison (6 months until expiration). If the index (premium of the nearby S&P 500 futures contract on a 5-day moving average) moves close to the upper line or above, bullish sentiment is prevailing which is a bearish indicator. The reverse is true if the index moves near or below the lower line; it shows extreme pessimism by futures traders and indicates bottoms.

Charts on this page are intended for demonstration purposes. The updated versions are for subscribers only.

Global Futures Trend Index: This index is computed by dividing the daily highs by the sum of the daily highs and lows. A 10-day moving average is applied to smooth out the swings. As long as the readings of this index stay above the 80%-level there is a solid bullish trend in progress. Any weakness should be used to go long or to buy call options; preferably of stocks which are in a clear uptrend, or stock index options.

Charts on this page are intended for demonstration purposes. The updated versions are for subscribers only.

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The information contained in the documents in this website should not be construed as an offer to sell, or a solicitation to buy, any securities referred to herein. The information is considered reliable, but not guaranteed as to accuracy or completeness.

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