Quick Key Reversal Indicator (KRI) Update

January 28, 2013

We have been watching for indications that markets are moving toward an overheating status. As we have discussed previously, when either there is too much optimism or pessimism, there is often an over-reaction and then a corrective period or quick reversion if you will.

To get a better read on this, we created the Key Reversal Indicator (KRI) that has the potential to find turning points. What we are looking for is readings well into the area that exceeds a “normal” market condition and move so far that a snap in the other direction could occur within days. It is not just that markets move in Read more

You Asked, Here it is: The Spearman Indicator

August 21, 2012

The Spearman indicator is a useful tool. In fact, we use some of the calculation/data points for our Key Reversal Indicator.

A chart that we have posted  here before has been updated as we received several requests from readers.

Note that the recent reading was one of the highest Read more

Key Reversal Indicator (KRI) – Flashing A Warning

August 15, 2012

We have seen a good amount of market conditions that exhibit similar trends as we have seen over the past few days. Once the Key Reversal Indicator moves above these levels, it is often a time for a quick reversal. While the reversal does not mean a crash, it does mean that there is a higher than average potential for a correction off of these levels in order to bring the “markets” back into equilibrium.

Therefore, consider this a confirmation from Read more

Corn: Important Considerations We Are Watching

August 10, 2012

We are watching corn pricing closely as it has a direct effect on the profitability of many companies. It also will be important when considering the cost of gasoline at the pumps.

In particular, we are interested as we are long a few of the poultry distributors as mentioned HERE and short Buffalo Wild Wings.

The crop report (view report) was bullish for corn today, but not as bullish as some expected. Initially corn futures popped on the release at 8:30am, but has since come down 4% from that level.

Read more

Back to Spearman and The Bloomberg Trend/Stall Indicator (Heads Up!)

March 26, 2012

The Spearman Indicator is like the “boy crying wolf” lately. But let’s not get too comfortable/complacent.

We need to put into the proper perspective the level and the direction to see what we can determine from the signal. As we have discussed previously, the rolling-up or -over of the indicator, above/below the moving average is one important condition, but the level (above or below zero) is where the indicator is designed to provide a proper signal.

From the chart below, there is confirmation by Read more

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