The dk Report
-01- NASDAQ -- Daily
NASDAQ daily chart with key indicators. Buy/Sell signals determined by the 5-10-20 Timer, chart 3 below.
-02- Risk Ratios
A set of key ratios with the S&P 500. The market does best when the charts above are climbing.
-03- The 5-10-20 Timer -- IT Buy/Sell Indicator
Among the earliest momentum-based market timers. Lags the market at potential inflection points, but this also prevents head-fakes in either direction. Excellent with IT trend changes. Less useful with short corrections and choppy markets.
-04- TOF Ratio -- IT Buy/Sell Indicator using options
The NASDAQ divided by the Put/Call Ratio helps visualize sentiment among options traders. Call buying and the climbing lines it creates is positive for stocks, and 21/50-day EMA crossovers trigger Buy and Sell signals. This ratio was first created by long-time board poster Richard McRanie [The Old Fool (TOF)]. Thanks, TOF.
-05- Summation Index -- Market Breadth
The Summation Index is a breadth indicator based on net advancing stocks. It has a high degree of reliability for IT market direction. Applying an SAR overlay identifies Buy/Sell bias changes. In sideways markets, Summation is prone to occasional head fakes in either direction. It works in tandem with the McClellan Timer, and the two work to confirm one another. McClellan triggers are usually ahead of Summation signals.
-06- McClellan Timer -- IT Buy/Sell Indicator
The McClellan is a sensitive breadth indicator sometimes prone to head fakes in either direction. This is especially true in sideways markets. The McClellan moves you in and out quicker than either the 5-10-20 or the NASI, making it useful for active investors who prefer scalping quick rallies and avoiding short-term pullbacks.
-07- Dow Theory
The market performs best when Industrials, Transports and Utilities all trade above their 50-day EMA.
-08- Annotated VIX -- Daily
The VIX charts expectations for choppy market action over the next 30-day period. It's derived from the premium investors are willing to pay for short-term portfolio insurance, hence its reputation as a fear index. A high VIX ins't necessarily bearish, but indicates big price swings are possible in either direction. The VIX has a tendency to stay within 10% of its 10--day MA. The line at 20 marks the long-term historical mean of the VIX.
-09- NASDAQ 60-minute -- Short-term Indicator
The NASDAQ 60-minute chart shows short-term market health, and helps identify entry and exit points. Strong rallies stay above the black one-week EMA, and stocks act best when the black line is above the red. This chart gets noisy around inflection points and trend reversals.
-10- NYSE Tick -- Short-term Indicator
The Tick chart shows the short-term health of the NYSE. The black line is the 3-day EMA, and the light purple line is the one-day EMA. A climbing black line above zero is a sign of a healthy market. Crossovers of the 1-day and 3-day EMA's in either direction identify very short-term trend changes.