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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: ChartMan22 who wrote (89825)	2/16/2017 10:47:26 AM
From: robert b furman	4 Recommendations Recommended By Ericeira GROUND ZERO™ Pntrlady toccodolce Respond to of 222346

sentimeter - a measurement of sentiment. Tom Drake (who was a commodity trader) learned it from an elderly trading while trading commodities in California. He has shared the calculation procedure. It is admittedly not the Holy Graile - but rather an excellent indicator of when markets get toppy or bottoming. It is the product of the put call ratio times the VXO then added together for a rolling 5 days. It was shown to me by a gentleman who learned it from a commodity trader. It is an old timing assist. It is not by any means perfect - but I find it helps filter out the fear and noise that is so often out there. Mid thirty is a very low number and a short term top that will roll over. 110 - 120 is scary bearish bottom and due a bounce (if viewed within an impulsive up wave). 140-150 can be a bearish bottom of declining corrective wave within impulsive up wave. Really bad major bottoms can get to 230 - 250s the numbers can both be found at this link: cboe.com yesterday's calculation was : .84 x's 10.77 = 10.77 the last four days before that were 10.40 10.41 10.34 9.07 rolling 5 day total = 42.09 The lowest # I've seen since june of 2015! past periods of a 2cs that high were February 11th this year @ 148.65 and January 13th this year @ 152.92 (2016) Also high numbers in Sept of 2015 9/29 2 155.06 and august 27 2015 @ 203 Were not there like those 4 days yet but it keeps everything relative in my mind. Here's a chart of the SPX highlighting the referenced 4 high 2cs days screencast.com Hope it helps and Thanks goes out to Tom Drake for being kind enough to share the thought process! I've done it for several years daily and find it very helpful in filtering out the noise. Hope this helps you time things. Bob