A Key Signal Has Just Flashed For Stocks - Quick Note
Money Making Trade Setup Included
In this article, we’re going to quickly cover a key signal that has just triggered for the US stock market and we’ll also provide you with a Money Making Trade Setup!
This signal was triggered on the Major Index Combo indicator.
The indicator is based on weekly data and reflects hedgers' and small speculators' positions in the S&P 500, Nasdaq 100, and DJIA futures.
It combines the full contract and e-mini (adjusting for contract size), and calculates the dollar value.
The output from this is a 1-year stochastic of hedger positions minus speculator positions, so if it reads 100, then hedgers (smart money) are the most exposed to stocks in at least a year, and speculators (dumb money) are the least exposed.
This is a non-contrary indicator, so it’s usually a good sign for stocks when this metric is high (reading above 80).
Conversely, readings below 20 are usually a negative sign for stocks.
This chart shows all the instances when the 10-week moving average for the Major Index Combo crossed above 66 - the signal that was recently triggered.
The most recent signal occurred on May 20th.
In the next section, we will provide you with:
A breakdown of the returns following each of these signals
The overall performance of all of these signals put together
A Money Making Trade Setup that can be executed right away!
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