Global Futures Bottom Indicator
The Global Futures Bottom Indicator was developed by R. Koch of Wall Street Courier. To our knowledge there is no previous mentioning of this indicator in any financial publication. It does not appear very often but it is extremely reliable when the market is at a turning point. It prevents long-term investors from buying at the wrong time and works especially well for option traders because of its incredibly perfect timing. 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.
- CALLS ADVANCES
- CALLS DECLINES
- PUTS ADVANCES
- PUTS DECLINES
- (CBOE MARKET REPORT)
- Divide the number of calls advancing by the number of calls declining
- Divide the number of puts declining by the number of puts advancing
- Subtract the result of calls adv./decl. from the result of puts decl./adv.
- Plot the difference on a chart and ignore the decimal.
|
Example
|
Calls Adv.
|
Calls Decl.
|
Unch.
|
Puts Adv.
|
Puts Decl.
|
Unch.
|
| Prev.Week |
23000
|
11000
|
8000
|
7000
|
25000
|
10000
|
| This Week |
9000
|
26000
|
6000
|
24000
|
8000
|
7000
|
You calculate as follows:
|
23000 : 11000 = 2,09
|
25000 : 7000 = 3,57
|
Difference = 148 (357 minus 209)
|
|
9000 : 26000 = 0,34
|
8000 : 24000 = 0,33
|
Difference = - 1 ( 33 minus 34)
|
|
Date
|
Calls Adv.
|
Calls Decl.
|
Calls A/D
|
Puts Adv.
|
Puts Decl.
|
Puts D/A
|
Bottom Ind.
|
|
09.06.95
|
12656
|
14215
|
0,89
|
9590
|
13879
|
1,45
|
56
|
|
16.06.95
|
17696
|
9818
|
1,8
|
5647
|
18431
|
3,26
|
146
|
|
23.06.95
|
14390
|
8550
|
1,68
|
6014
|
13839
|
2,3
|
62
|
|
30.06.95
|
10933
|
17902
|
0,61
|
12571
|
11735
|
0,93
|
32
|
|
07.07.95
|
21611
|
7779
|
2,78
|
4894
|
20146
|
4,12
|
134
|
|
14.07.95
|
17819
|
12190
|
1,46
|
8627
|
15531
|
1,8
|
34
|
|
21.07.95
|
9071
|
22844
|
0,4
|
15943
|
9405
|
0,59
|
19
|
|
28.07.95
|
18152
|
7554
|
2,4
|
4748
|
17237
|
3,63
|
123
|
|
04.08.95
|
11159
|
21092
|
0,53
|
14649
|
11905
|
0,81
|
28
|
|
11.08.95
|
13081
|
19336
|
0,68
|
12100
|
14522
|
1,2
|
52
|
|
18.08.95
|
19594
|
12741
|
1,54
|
6930
|
20184
|
2,91
|
137
|
|
25.08.95
|
9760
|
16547
|
0,59
|
10368
|
11238
|
1,08
|
49
|
- Readings between 1 and 5 are also very reliable and indicate intermediate bottoms in bull markets.
- Readings up to 25 may work but should be counterchecked with other indicators such as the Global Futures Market Timing Indicator.
- Readings above 600 are good breadth indicators and show you that a powerful market move on the upside is to be expected.
- Ignore all other readings.
Past performance does not guarantee future results!
