This page concerns tracking trends in the stock market so that a person can make profitable trades depending on the current probable direction of the stock market. I will be showing several ETF trends in the future as compared to the S&P100 percentage of strength chart and the McClellan Oscillator ($NYMO). Stock chart links will be shown in a table at the bottom of the page.
The
S&P100 percentage bull index (OEXA200R) is a good indicator to watch for current market trends. If the daily moving average line is above the 50-day line, then stocks are probably safe. The
McClellan Oscillator ($NYMO) is a good bottom indicator. If the chart is below -70, then you could buy a leveraged ETF like UDOW as long as the Dow chart has an upward sloping 200-day average.
Another indicator to watch is the comparison of the 10-year bond (IEF) to the 20+year bond (TLT) as presented by the respective ETFs. If the chart of IEF versus TLT is going down, then that shows that yields are narrowing, and this is basically a yield curve monitoring device. When people prefer the long bond (TLT) over the 10-year bond (IEF), that demonstrates fear in the stock market. TMF, a leveraged long bond ETF, is a great stock to buy under those conditions because it will beat the returns of the popular TLT.