Q&A | AUG 2002
Q&A by Don Bright
Q&A by Don Bright LEADING INDICATORS Every trader I have asked tells me to look at the leading indicators before trading. A friend told me he watches Intel [INTC] to see the direction of the overall market. Is this a good indicator? What do your traders use? — edgetrader If you follow the money, as in many things, you will see a valuable leading indicator. Since there is more money changing hands in the Standard & Poor’s futures pit (and e-minis) than the rest of the overall market, it only makes sense to follow the SPOOs (S&P 500). When there is premium to FV (fair value), the market will follow; when there is a discount to FV, the market will follow (downward). If you add the money involved in program trading, then you have an even stronger leading indicator.
by Don Bright
Technical Analysis of STOCKS & COMMODITIES
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