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""My husband and I were searching for an options site that we could understand. We found it with myoex.com. Although all of their trades have not been winners, we do like what we have seen so far. Thanks for a great service."" Laurie E., Columbus, OH |
   
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WHAT WE LOOK AT
During the trading day we watch the following :
TRIN VIX MA P/C Ratio
TRIN - The TRIN, short for Trading Index, aka Arms Index, was developed by Richard Arms. This indicator detects overbought and oversold levels in the market. The TRIN is calculated by: (Up issues/down issues) / (Up volume/down volume). The TRIN has an inverse relationship with the market. In other words an increasing TRIN is bearish while a decreasing TRIN is bullish.
VIX - VIX stands for the CBOE Volatility Index. The VIX measures the implied volatility from 8 call options and 8 put options on the S&P 100 Index. Normally, when the VIX is high, it tends to suggest that traders feel volatility is greatly increasing and when the VIX is low, traders are looking for a quiet market.
MA - We use a simple moving average (SMA) of 5 and 10 days. For example, a 5 day moving average is the average of the closing prices of the S&P 100 for the last 5 days. To determine the simple moving average each day, you drop the first day and add the last day to the five days being averaged. As the index price changes, the 5 day SMA changes either up or down. Generally speaking, a buy signal is generated when the price of the index rises above the SMA and a sell signal is generated when the price of the index falls below the SMA.
Put/Call ratio - The Put/Call ratio, developed by Martin Zweig, is a market sentiment indicator that shows the relationship between the number of Puts to the number of Calls that are traded on the CBOE. All Index options and Stock options on the CBOE are included in this ratio.
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