|
How to read the S&P Market Leaders Indicator?
When interpreting the chart above, you need to remember
that the most important factor is the relationship between Index
Price and the Volume Moving Average (VMA).
In this example we see that the index is trading sideways for the
first part of the day, and then VMA begins to increase quite rapidly.
In this case, the index and the VMA are both increasing, this is
because the professional traders are selling AND covering their
shorts. Generally when an index and the VMA both increase, that
signals that the index will begin to decrease after the VMA has
peaked. In this example you can see that not long after the VMA peaked
the index began to decline. It is just after the VMA begins to fall
that you should make your trading decision.
Below is an example of how one of our exclusive
institutional investors used this signal for
the index to maximize profits by
trading some of the derivatives of the S&P 500 index:
Details of the above trades, and the derivatives used for this index, can be found in the detailed overview and in the member's section of our site.
Listed below are some of the derivatives
which you can trade using this indicator:
| Securities |
Issuer |
Type |
Symbol / Root |
|
S&P 500 Index
Fund |
AMEX |
ETF |
IVV |
|
S&P 500/BARRA
Growth Index Fund |
AMEX |
ETF |
IVW |
|
S&P 500/BARRA
Value Index Fund |
AMEX |
ETF |
IVE |
|
SPDRS (Standard
& Poor's Depositary Receipts) |
AMEX |
ETF |
SPY |
| S&P 500 Index Linked Notes |
Bank of America |
ETF |
BOA.A |
|
S&P
500 "MITTS" |
Merrill Lynch |
ETF |
FML |
|
S&P
500 "MITTS" |
Merrill Lynch |
ETF |
MLF |
|
S&P
500 "MITTS" |
Merrill Lynch |
ETF |
MPF |
| S&P 500 Callable Notes |
Morgan Stanley |
ETF |
JMS.A |
|
S&P 500 Index
"TIERS" |
Salomon Smith Barney |
ETF |
RSB |
|
S&P 500 Principal
Protected Notes |
Salomon Smith Barney |
ETF |
ASB |
| S&P 500 Index "TIERS" |
Structured Products Corp. |
ETF |
HSB |
| S&P 500 Index "TIERS" |
Structured Products Corp. |
ETF |
SRB |
| BULS linked to the S&P 500 Index |
UBS AG |
ETF |
BUL.D |
| BULS linked to the S&P 500 Index |
UBS AG |
ETF |
BUL.E |
|
S&P 500 Index Options |
CBOE |
Options |
SPX |
|
(Reduced-value) LEAPS |
CBOE |
Options |
SPX |
|
S&P Long-Dated Options |
CBOE |
Options |
SPL |
|
E-mini S&P 500 |
CME |
Options on Futures |
ES |
|
S&P 500 |
CME |
Options on Futures |
SP |
|
S&P 500 Barra/Growth Index |
CME |
Options on Futures |
SG |
|
S&P 500 Barra/Value Index |
CME |
Options on Futures |
SU |
|
E-mini S&P 500 |
CME |
Futures |
ES |
|
S&P 500 |
CME |
Futures |
SP |
|
S&P 500 Barra/Growth Index |
CME |
Futures |
SG |
|
By trading index securities using our volume indicators instead of stocks, you gain stability and predictability that stocks do not have. An index is a far more logical in it's actions than the individual stocks it's based upon.
|
