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.

Check BARRON'S every Monday for the weekly:

• CALLS ADVANCES

• CALLS DECLINES

• PUTS ADVANCES

• PUTS DECLINES

It takes you only five minutes every week to calculate the Global Futures Bottom Indicator:

• 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

1 1 000

8000

7000

25000

1 0000

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

Calls

Calls A/D

Puts

Puts

Puts D/A

Bottom

Adv.

Decl.

Adv.

Decl.

Indicator

09.06.95

12656

14215

0,89

9590

13879

1,45

56

16.06.95

1 7696

9818

1,80

5647

18431

3,26

1 46

23.06.95

1 4390

8550

1 ,68

6014

13839

2,30

62

30.06.95

1 0933

17902

0,61

12571

11735

0,93

32

07.07.95

2161 1

7779

2,78

4894

20146

4,12

134

14.07.95

17819

121 90

1,46

8627

15531

1,80

34

21.07.95

9071

22844

0,40

1 5943

9405

0,59

19

28.07.95

1 81 52

7554

2,40

4748

17237

3,63

123

04.08.95

1 11 59

21 092

0,53

1 4649

11905

0,81

28

11.08.95

13081

19336

0,68

1 21 00

14522

1,20

52

18.08.95

1 9594

12741

1,54

6930

20184

2,91

137

25.08.95

9760

16547

0,59

1 0368

11238

1,08

49

© WallStreetCourier.co mTHE GLOBAL FUTURES BOTTOM INDICATOR

© WallStreetCourier.co mTHE GLOBAL FUTURES BOTTOM INDICATOR

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Any zero or minus reading indicates a bottom. Since this indicator was invented and developed it only failed twice on a minus reading if compared to the Dow Jones. This was due to panic selling on August 3rd and August 24th 1990 when Saddam invaded Kuwait.

• 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.

For your convenience there is a track record attached (377 kb) back to 1985 for you to check the value of this indicator. Plot the numbers on a chart and compare it with previous market action. Feel free to make use of our indicator if you find it useful. Feel also free to publish it as long as you mention the source and call it the Global Futures Bottom Indicator. Download the track record at http://www.wallstreetcourier.com/technician/timing-indicators/track-record.htm

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