Greed and Fear

I am using a proprietary indicator that I have developed over the last year. It takes a sentiment reading of my universe of roughly 1700 names.

Using the SPY I will attempt to sell the greed and buy the fear.

My goal is 50 trades in this journal then close it. I just want to stay honest and posting here should help with that.

Overlayed with the Cash SPX is an oscillator of sorts. And extreme level of greed is .60 and fear is -.60. Currently anyway. I built the spreadsheet to adjust over a period to avg so an outlier today may not be one in a year.

 

Here it is overlayed with the spx on a daily basis going back to the first of the year.

 

And here with levels that will fluctuate. This is where I take trade signals from. Going long at a close below -.59 and short on a close above .65 currently.

 

So thats it for now. I`ll post when I get a signal. Good trading to you all.

 

looks like a derivative of the McClellan Oscillator. am i correct?

 

if I bend stoc, cci, macd enough it could look like that

 

Hello vhehn,

The only thing it has in common with the McClellanOsc it is a breadth indicator. Thats where it stops. For the past year I have been applying the code to individual stocks with good success. So I decided to apply it to my universe and use it for market timing.
I`m sure the code i`m using is not 100% original but i`m pretty sure its not a crowded trade. So results will speak. Either I make money or get smoked in front of everyone.

 

ok. good luck. will be watching.

 

I can assure you it is not using a combo of any indicators. Otherwise I would say so.

 

Short SPY @ 129.85.
Stop @ 133.75
Tgt = open