Global Futures Bottom Indicator

 

The Global Futures Bottom Indicator was developed by R. Koch of Wall Street Courier. To our knowledge there is no previous mentioning of this indicator in any financial publication. It does not appear very often but it is extremely reliable when the market is at a turning point. It prevents long-term investors from buying at the wrong time and works especially well for option traders because of its incredibly perfect timing. Unfortunately this indicator does not tell you when to sell. Set yourself a limit if you trade options, or use trailing stop-loss orders if you are a long-term investor.

   
  Check BARRON`S every Monday for the weekly:
  • CALLS ADVANCES
  • CALLS DECLINES
  • PUTS ADVANCES
  • PUTS DECLINES
  • (CBOE MARKET REPORT)
It takes you only five minutes every week to calculate the Global Futures Bottom Indicator:
  • Divide the number of calls advancing by the number of calls declining
  • Divide the number of puts declining by the number of puts advancing
  • Subtract the result of calls adv./decl. from the result of puts decl./adv.
  • Plot the difference on a chart and ignore the decimal.
Example
Calls Adv.
Calls Decl.
Unch.
Puts Adv.
Puts Decl.
Unch.
 Prev.Week
23000
11000
8000
7000
25000
10000
 This Week
9000
26000
6000
24000
8000
7000

 

 

You calculate as follows:

   23000 : 11000 = 2,09     
25000 : 7000 = 3,57     
Difference = 148 (357 minus 209)
   9000 : 26000 = 0,34
8000 : 24000 = 0,33
Difference = - 1 ( 33 minus 34)

 

Date
Calls Adv.
Calls Decl.
Calls A/D
Puts Adv.
Puts Decl.
Puts D/A
Bottom Ind.
09.06.95
12656
14215
0,89
9590
13879
1,45
56
16.06.95
17696
9818
1,8
5647
18431
3,26
146
23.06.95
14390
8550
1,68
6014
13839
2,3
62
30.06.95
10933
17902
0,61
12571
11735
0,93
32
07.07.95
21611
7779
2,78
4894
20146
4,12
134
14.07.95
17819
12190
1,46
8627
15531
1,8
34
21.07.95
9071
22844
0,4
15943
9405
0,59
19
28.07.95
18152
7554
2,4
4748
17237
3,63
123
04.08.95
11159
21092
0,53
14649
11905
0,81
28
11.08.95
13081
19336
0,68
12100
14522
1,2
52
18.08.95
19594
12741
1,54
6930
20184
2,91
137
25.08.95
9760
16547
0,59
10368
11238
1,08
49

 

 

TechnicalAnalysisSite.com - Global Futures Bottom Indicator

   
 
TechnicalAnalysisSite.com - Global Futures Bottom Indicator
 
Dow Jones for comparison    S&P 500 for comparison   Home   Updated charts are available on WallStreetCourier.com
   
  Any zero or minus reading indicates a bottom. Since this indicator was invented and developed it only failed twice on a minus reading if compared to the Dow Jones. This was due to panic selling on August 3rd and August 24th 1990 when Saddam invaded Kuwait.
  • Readings between 1 and 5 are also very reliable and indicate intermediate bottoms in bull markets.
  • Readings up to 25 may work but should be counterchecked with other indicators such as the Global Futures Market Timing Indicator.
  • Readings above 600 are good breadth indicators and show you that a powerful market move on the upside is to be expected.
  • Ignore all other readings.

 

 

 

 
Past performance does not guarantee future results!
 
   
 


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