Futures Fear Indicator

The Global Futures Fear Indicator is a proprietary indicator of Global Futures and not available anywhere else. It was unknown until now to the investment community and to our knowledge there is no previous mentioning of this indicator in any financial publication. This takes of course a lot of guts because the opinions of the widely quoted gurus are usually contrary at this time. Unfortunately this indicator does not tell you when to sell. Set yourself a limit if you trade options or use trailing stop-loss orders if you are a long-term investor.

The Wall Street Courier Index gives you a longer term picture of the stock market. Readings below 40 indicate a heavily oversold market which is ripe for an upturn. Readings above 50 flash a warning signal and you should use trailing stop-loss orders to protect your profits. This index serves longer-term oriented position traders very well. It is also a contrarian indicator and once again we would like to remind you that charts usually look most bullish at tops and most bearish at bottoms.This indicator has an excellent track record as you can see.

Global Futures Trading Index

The Global Futures Trading Index is a proprietary indicator of Global Futures. It shows bottoms and tops in trends and should be used together with the Global Futures Trend Index for exact timing. If the market is in a clear uptrend according to our trend index, go long if the Global Futures Trading Index shows a reading below 35. The reverse is true in a downtrend. Please bear in mind that this index is a contrary indicator and therefore when these signals are given, they will be most likely contrary to most of the news of the moment and the opinions of the well known and most widely quoted gurus of Wall Street.

Program Trading

Program trading is the purchase or sale of at least 15 different stocks with a total value of $1 million or more. Some of Wall Streets biggest names are the players in this game and they are among others: Merrill Lynch, Bear Stearns, First Boston, Morgan Stanley, Deutsche Bank Sec, and Nomura. There is a bullish tendency in the market whenever the Buy/Sell Ratio of program traders rises above 1,20 on a 4-week moving average. When program trading becomes excessive and accounts for more than about 25% of total volume on a 4-week moving average, the market became vulnerable in the past.

Global Futures Time Premium Index

The Global Futures Time Premium Index is a sentiment indicator. The spread between the S&P 500 cash index and the S&P futures contracts (premium) shows high readings near market tops and low readings near market bottoms. The bold red lines on the chart below show you the futures contracts with the highest and lowest premiums of the last years on a 5-day moving average for comparison . If the index moves close to the upper line or above, bullish sentiment is prevailing which is a bearish indicator. The reverse is true if the index moves near or below the lower line; it shows extreme pessimism by futures traders and indicates bottoms.