Stock Market Indicators – March 3rd, 2016

This is the last free up-to-date post of our SmashTrades proprietary indicators.  As Robert Heinlein wrote:

“TANSTAAFL, There Ain’t No Such Thing as a Free Lunch”

You might be thinking the following:

“I’ve got the summation indexes ($NYSI, $NASI) on stockcharts.com, why do I need SmashTrades indicators?”  And you would be right to wonder that.

SmashTrades indicators can be customized to any time frame you want to trade.  The summation indexes, while fantastic – and one of my favorite tools, typically find inflection points every three to six months.  They also don’t really have a set value for a max / min because they aren’t normalized in any way.  So you never really know how extreme a move is. SmashTrades indicators are based on a simple 0 to 100% scale.

In my experience, if you’re trying to use the summation indexes for your best entry point, you’re going to be a few days late as their underlying indicator (the Oscillator) must ascend to positive values before it starts to create upticks in the summation index.  The oscillator could be used for these purposes, but again that is set on a bit longer timeframe, and doesn’t give insight into multiple year trends the way our long term oscillator does.  The longer timeframe could cause you to buy into a short term overbought market that will cause your positions to instantly show a loss.

SmashTrades indicators can be used on 15 minute bars, 30 minute bars, hourly bars, daily bars, monthly bars for finding overbought / oversold levels.  It all depends on your risk tolerance and your desire to trade more or less frequently.  Depending on the constituency in which we attract to this site, certain time frames will be more or less available to subscribers.  We’re trying to get you in at the best hour during the best day during the best week during the best month to make a profit.  Lining up these timeframes only increases your odds of quickly showing a profit.

Please check out our recent track record.  But the truth is the indicators have been right for years – they just haven’t been followed by me religiously.

Short term very overbought.  Medium term overbought.  Long term remains oversold.

All Indicators - 3-3-2016

 

 

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