Follow Me At My New Twitter…
I will be relocating this blog to my new website and twitter account where I’ll be posting market commentary and option trades daily on my new twitter account @classicoptions and would greatly appreciate it if you come and follow, like and retweet as I place trades. I will leave all the resources on this blog up for anyone who wishes to continue to use and reference it. Hope to see you there, leave a comment or two and say Hi. Good luck trading!
Percent Buy Index (PBI) – Buy and sell signals on cross over of the 32 EMA.
NYA Bull Market – Watch for upward cross of zero line for a bullish confirmation.
$RHNYA – NYA Record High – When 10 DMA crosses above 60 indicates a new rally. A cross below 20 indicates oversold condition.
$SKEW – According to CBOE, a reading of 100 means that the probability of a black swan event is negligible. At 115, there’s a 6% risk of one. At 135, there’s a 12% risk.
$VIX:$VXV– Low readings produce market declines. a VXV/VIX ratio below 1 is a buy sign for the S&P 500.
$NYAD:$CPC – Look For +- divergence. Watch for Sell signals when crosses below -400, buy signals crosses up +400.
$CPCE – $SPX DAILY, $CPCE DAILY. The 10-period MA of the put/call ratio usually turns before the market does, forewarning traders of an impending reversal. By monitoring the put/call ratio, we can determine the amount of bullish or bearish sentiment. Low readings mark overbought conditions and levels of complacency. High readings mark oversold conditions and levels of capitulation.
$CPCE – The 5-period MA of the put/call ratio
Advance Decline NYAD – An advance with narrow participation is unlikely to keep up with the underlying index and a bearish divergence (chart here) will form. Similarly, a decline with narrow participation is unlikely to keep up with the index and a bullish divergence will form.
$SPXEW:$SPX – Look For +- divergence
!PRBFISH – Bottom indicator. This indicator is used to locate only bottoms in markets.
!GT20SML – Another indicator for locating potential bottoms in bull markets. Under 30 markets a buy.
$SPXA50R – Stocks above their 50 DMA, look for a break of 25 or 75 for major tops and bottoms.
$NYA200R – Look for divergences forming on stocks above their 200 day moving average.
S&P In Relation to Its P/E – The normal range for the GAAP P/E ratio is between 10 (undervalued) to 20 (overvalued). The following chart shows the S&P 500 Index in relation to this range.
$INDU – Dow Jones Chart
$SPX – S & P Chart
$RUT – Russell Chart
$Nasdaq Chart
$XJY – Japanese Yen
$GOLD – Gold Chart
Nitro Trend 
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