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This weekend, I want to spend a little time talking about the Secondary Trend Indicator (originally called our Technical Indicator Index), shown in the chart below. We created this indicator at www.technicalindicatorindex.com over twelve years ago, and it has been simply incredible at identifying intermediate term trends ever since. Its value is that it ignores minor countertrend moves (noise), and keeps us invested in the larger degree trend that is truly underway.
It spotted the recent January 2014 decline before it started, back in late November 2013. In fact prices did decline from when the Sell signal was triggered on November 20th, 2013. After that decline completed, on February 27th, 2014, it then triggered a new Buy signal, and has remained on that Buy signal through this weekend, June 8th. Since that February Buy signal, the S&P 500 has risen almost 100 points. Pretty impressive. This indicator has consistently performed well for many years.
This indicator is terrific for traders who like to take a position and hold it for several weeks or months. While on occasion there are periods of time where this indicator will get temporarily fooled by the market, especially during sideways oscillating periods, it is a very smart indicator and will quickly reorient itself, reverse course, and find the next significant trend. It will not be fooled very long at all.
Looking back over the past two years, on November 20th, 2012, our Secondary Trend Indicator spotted the start of a new multi-month rally, triggering a new Buy signal. At the time, the S&P 500 was at 1,387.81. It remained on a Buy signal for almost a year, ignoring minor declines because it knew those declines were not going to be significant, and it knew prices were going higher, telling intermediate term traders and investors to stay long the market. The Buy signal lasted until October 7th, 2013. Over the course of the year that this indicator remained on a Buy signal, the S&P 500 rose to 1,725.52, a rise of 337.71 points in the S&P 500, or 24 percent!
A second indicator we want to show you, in the above chart, is not too shabby either. This is our Demand Power / Supply Pressure Indicator. It measures the simplest basic law of economics, that price is determined by the equilibrium of Demand and Supply. What this indicator is doing is determining which of the two forces is dominating the market at any given time. If Demand Power is dominating Supply Pressure, then in all likelihood prices are headed higher. If Supply Pressure reigns over Demand Power, prices are likely headed lower. We have a proprietary formula that measures Demand Power and Supply Pressure in the stock market every night after the close, and report that to our subscribers in our nightly market newsletters.
Take a look at how well this Demand Power / Supply Pressure Indicator performed in early 2013, and again in late 2013. Pretty impressive, right? Again, this is an intermediate term indicator, one that cuts out the noise of minor countertrend moves.
Next, below, we show our bread and butter short-term trading indicator, our Purchasing Power Indicator.
This Purchasing Power Indicator is an indicator that identifies short-term high momentum reversals. This indicator is amazing in its ability to find short-term quick and fast trends, and is ideal for short-term options traders. If we do a short-term trade in our Platinum trading program, with a time horizon of a few weeks, this is one of the most important decision making component criteria we use. For example, just over a week ago, this indicator sniffed out a coming fast rising trend, and generated a Buy signal on May 27th, which was followed by a 38 point rally in the S&P 500. This indicator told us a rally was coming so be ready with Call options, as a profitable trade was likely coming. This is another proprietary indicator that you will not find anywhere, based upon a formula we came up with 12 years ago that has been remarkable at identifying fast moving short-term trends.
We use all three of the above indicators as part of our decision making criteria in our Platinum Trading program at www.technicalindicatorindex.com . We calculate the levels for each of these indicators every night and report them in our daily newsletters, so anyone who would like to plug into these indicators for their own trading and investing has the opportunity to do so. We offer a free 30 day trial subscription to anyone interested in following these for free, and offer an annual standard subscription at a very modest cost if someone would like access to them for an extended period of time. To get a free trial subscription, simply click on the free trial button at the upper right of the home page at www.technicalindicatorindex.com . These indicators take the emotion out of trading and investing, and provide unbiased analytic measures of high momentum trends at two different time frames, short-term (one to 4 weeks), and intermediate term (one to 12 months).
Do not be satisfied hearing what the market did; learn how to predict what the market is going to do. Join us at www.technicalindicatorindex.com as we study the language of the markets. Markets tell where they are headed. Technical Analysis is the science where we learn and apply the language of the markets. We are currently offering a FREE 30 Day Trial Subscription. Simply go to www.technicalindicatorindex.com and click on the Free Trial button at the upper right of the home page. If you would like to follow us as we analyze precious metals, mining stocks, and major stock market indices around the globe, We prepare daily and expanded weekend reports, and also offer mid-day market updates 2 to 3 times a week for our subscribers.
"Jesus said to them, "I am the bread of life; he who comes to Me
shall not hunger, and he who believes in Me shall never thirst.
For I have come down from heaven,
For this is the will of My Father, that everyone who beholds
the Son and believes in Him, may have eternal life;
and I Myself will raise him up on the last day."
John 6: 35, 38, 40