StockMarketTimer.com
Title
Market Timing for swing traders, trend followers and sector fund investors - StockmarketTimer.com
Description
About Basic Service
The StockMarketTimer (SMT) index trading system tracks the two major stock indexes, the S&P 500 Index (SPX) and the Nasdaq 100 Index (NDX). Since we can't trade the indexes directly, we buy enhanced index mutual funds or buy and sell short the index tracking stocks (SPY, QQQ). To take advantage of both up and down trends in the market, we trade both positive and negative beta index funds as offered by Rydex and Profunds. We utilize a number of timing indicators to switch between up trending and down trending movements in the indexes.
Market Trend Indicator
Our Market Trend Indicator graph show the intermediate term trend of the general market. The trend is determined by the slope of the blue line shown on the graphs. Changes in trend direction are indicated when the blue trend line crosses over the red moving average line. The trend line is a leading trend indicator with a high degree of accuracy in predicting significant index trend changes. Investors should consider buying positive beta index funds or the index tracking stocks with an up trending index and switching to negative beta index funds or shorting the tracking stocks with a down trending index. The Dominant Market Cycle (DMC) is shown at the bottom of the graph. Cycle lengths are calculated from top to top and from top to bottom. The DMC is useful in predicting the next trend change date. Trend changes may also occur around half cycle dates. Finally, Key Reversal Points are shown as circles on the line graph. Key points will often act as important support and resistance levels.
SMT Trading Bands
Our SMT Trading Bands are comprised of three lines that indicate the directional price momentum and price support/resistance levels of the underlying index. The bands are constructed by first calculating a dynamic moving average to create the middle (momentum) line and then calculating the True Range to create the upper and lower bands. The dynamic momentum line uses a variable-length exponential moving average indexed to price volatility or momentum, as popularized by Tushar Chande in his book "The New Technical Trader". This essentially dampens out price volatility, causing the Momentum Line (ML) to flatten in a non-trending market. When the index is trending strongly, the ML will have a definite slope, either up or down. The upper and lower bands define expected support and resistance levels and are based on the True Range over the past 10 days. True Range is defined as the maximum value of the difference between today's High and Low and the previous day's Close.
Languages
English
Contact
- NA
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- HIGHLANDS RANCH CO
- United States 80126
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