Hello Peter,
Hope all is well with you. Regarding the premium indicator -
I'm not using it in it's raw form. QCharts has an application in which you can take their data feed into an excell spreadsheet. What I've been doing is taking each tick eg. 7.1,7.9,8.4,8.4,7.3,6.3 ... and calculating the difference to accumulate a value, as in the example above the net would be -.8. So for example as a rally begins this accumulator can push well above 100, the value of the accumulated number doesn't matter, it's when the value starts erroding or trends sideways that the steam is gone from the move. I have been using a 25% band to guage the end of the push. So if the accumulator was 100, and dropped to 75 I would exit the position. The problem is that a lot of times the value will break the band, only to pick up steam and roll higher or lower. So I'm using a 60 minute Candlestick Chart to help make the stay or leave decision. Has worked well during the last swing. Indicator still showed down but the 60 minute candlestick formed an excellent tweezer bottom on Jan 31, I stayed with the chart and got out about 9 points into the upswing. It's not fool proof, but I feel It has helped to exit loosing positions sooner. The residual value left over from 2/2/00 is about 9 points to the upside on SPX from current position of 1409.12. if that plays out I'll confirm on Charts.
Regarding SPX symbol with Qcharts they are in process of upgrading bandwidth, the recommend using the CBOE symbol of INX as opposed to the CME symbol of SPX. They expect upgrade to be complete in 3-4 weeks.
Best
John |
