ISM PMI Part One

I have wanted to write about the PMI’s for a while now, but in the public eye (the blog) I kept putting off because the piece would be either one or two thousand words, or a book, and I didn’t love either idea. Then I started writing this “simple indicators” series and figured that I could just do a multi-part …

A Different Way To Do Oscillators

If you use charts, and clearly we do, you have seen all the oscillators. RSI, Stochastics (which have no stochastics), ROC, CCI, MACD, Williams %R, etc. There are a bunch. And while there are a million ways to use any tool, the classic way to use these tools is as overbought/oversold indicators. Of course what those terms means is subject …

Is The CRB Raw Industrial Index The Holy Grail?

So the CRB RIND-Raw Industrials Index is on the face of it one of the strangest little indices out there. It is comprised of hides, tallow, copper scrap, lead scrap, steel scrap, zinc, tin, burlap, cotton, print cloth, wool tops, rosin, and rubber. If you need to go google what some of those are, then don’t worry we aren’t going …

Baa-10Yr Yield Spread: A Stock Or Bond Indicator?

What is the Baa-10-yr yield spread? The Baa-10Yr yield spread is simply the yield on Baa rated bonds minus the yield on the 10-Yr US Treasury yield. You can get the Moody Baa yield and the US 10Yr yield on the FRED website. You can even do this with the FRED Excel plug in.  Alternatively you can get almost the …

The Basic Materials and Utilities Ratio: Just Call It The Real Time PMI

Basic Materials/Utilities XLB/XLU…The Real Time PMI? So the Basic Materials/Utilities ratio is calculated by simply dividing one by the other. If you have the SP Sector data then you can use that or just use the sector ETF’s of XLB/XLU.  In Excel it would be =XLB/XLU, in Stockcharts.com it would be XLB:XLU, etc. It is simple to do this ratio …

The Copper Gold Ratio: What it is and why you should track it

What is it and how is it calculated? The Copper/Gold ratio, HG/XAU, is a simple indicator that you can calculate on any platform that allows you to manipulate the data. All you do it take the price of copper and divide it by the price of gold. In Excel, it is literally =HG/XAU, in Stockcharts.com you go $copper:$gold, etc. It …

Market Sentiment 101.1

“The time to buy is when there’s blood in the streets.”-Nathan Rothschild…maybe Nathan Rothschild is credited with saying that quote, but no one seems to know if he actually said it. Regardless of if he said it or not, the idea rings true. Buy things when no one wants them, and sell them, when everyone wants them. Presumably, the trough …

The Process Driven Macro Markets Survey 1.0

The survey started 11 weeks ago Eleven weeks ago we started to put out a weekly financial market survey. It has been mostly sent out via Twitter so far, and since I am active on FinTwit that is the bulk, but not all, of the people who have filled it out. It took a few weeks to figure out the …