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Vertical Debit Spread
When the market, as indicated by the major indexes, increases or decreases in value it often has First Movers.
This is not always the case because large trade in index Futures or index ETFs can cause the entire market to
move at once, but it is true often enough to be effective in trading index ETFs, Futures or individual stocks.
In an otherwise balanced market this will move the entire market higher. However, this fund does not buy stocks
in the exact percentages that they are represented in the indexes, they buy their favorites in higher
proportions.
These favorites will be affected by this asset re-allocation much more strongly than the non-favorites. If
you watch a group of stocks that tend to be favored by institutional buyers like BlackRock then then you will
see the market's move sooner and more clearly. These are our "Tells".
The Risk Reversal
When the market, as indicated by the major indexes, increases or decreases in value it often has First Movers.
This is not always the case because large trade in index Futures or index ETFs can cause the entire market to
move at once, but it is true often enough to be effective in trading index ETFs, Futures or individual stocks.
In an otherwise balanced market this will move the entire market higher. However, this fund does not buy stocks
in the exact percentages that they are represented in the indexes, they buy their favorites in higher
proportions.
These favorites will be affected by this asset re-allocation much more strongly than the non-favorites. If
you watch a group of stocks that tend to be favored by institutional buyers like BlackRock then then you will
see the market's move sooner and more clearly. These are our "Tells".
The Sunny Side Up
list is not easy to explain on a theoretical basis but is does generally sort things out in a useful way.
Stocks from the top of the list (more than .08% per day) are mostly very bullish trends and represetn good long
candidates. These stocks should not be shorted in most cases. If these stocks are under performing the overall
market in the morning then the market is at risk of having a down day. When stocks from the bottom of the list
are doing better than the overall market then that is a bullish sign for the overall market.
In an otherwise balanced market this will move the entire market higher. However, this fund does not buy stocks
in the exact percentages that they are represented in the indexes, they buy their favorites in higher
proportions.
These favorites will be affected by this asset re-allocation much more strongly than the non-favorites. If
you watch a group of stocks that tend to be favored by institutional buyers like BlackRock then then you will
see the market's move sooner and more clearly. These are our "Tells".
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