SMC Update 2-20-24

02/20/2024


Comments (6)
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ChuckG
ChuckG

S&P cash projections were Log,

XXSPOWER127
XXSPOWER127

Here is another reason why the RATIO % of NDX TO DIA does not matter

a) The Dow is weighted based on the share prices of its components, not on each company's overall market value. b) today, AMAZON will now be in the dow - so you now have apple in the dow and MSFT and Amazon in the dow - based back thru history these MAG 3 OUT OF 7 were not in the dow - and since their share prices have increased alot it is not the best metric c) As I have stated from the BEGINNING of this ratio a better one is $NDX TO $XLK

so, the Dow could rise to over 40,000 = 42000 and the Q's not move that much overall and your ratio will DECLINE but nothing will CRASH like you think.

daniel039209
daniel039209

XXSPOWER127 said:

Here is another reason why the RATIO % of NDX TO DIA does not matter

a) The Dow is weighted based on the share prices of its components, not on each company's overall market value. b) today, AMAZON will now be in the dow - so you now have apple in the dow and MSFT and Amazon in the dow - based back thru history these MAG 3 OUT OF 7 were not in the dow - and since their share prices have increased alot it is not the best metric c) As I have stated from the BEGINNING of this ratio a better one is $NDX TO $XLK

so, the Dow could rise to over 40,000 = 42000 and the Q's not move that much overall and your ratio will DECLINE but nothing will CRASH like you think.

this is mathematically correct. I dont know how it could be viewed in another light?

XXSPOWER127
XXSPOWER127

daniel039209 said:

this is mathematically correct. I dont know how it could be viewed in another light?

Happy Hump Day what is mathematically correct? Mr E calcs? The issue is - since the start of this ratio - the dow has surged maybe I dont know? 3000 points - or 10-12 % say The NDQ has not - but the ratio has stayed the same This also has a 3 times hit ratio sample size - not significant IMHO Similar to his VIX under whatever only whatever times in the last 40 years did not pan out these things are very abstract

Now a days we need to be looking at things such as what the big boys look at

A) GAMMA B) $NYMO C) $SPXA200R D) DXY / TNX ratio to Stocks and how that has faired with neg covariance

I also like looking at bullish % index - if it gets under 70 that usually leads to a pullback

NOT CRASH SIGNIFICANT.. SIGNIFICANTSIGNIFICANTSIGNIFICANT all the time

XXSPOWER127
XXSPOWER127

daniel039209 said:

I see on the /NQ

10/10 ( weekly ) then click Daily we have a downside of 17173 confirmed (*) I have not watched the video yet However.. this offset is not the best - I see a few of them have been invalidated

I can never get the % OF THESE 10/10 " WEEKLY " but the offset is daily % ratio projections #'s to see what they are No one ever answers either It would be GREAT.. if anyone could figure out the ATR on this - and then you can get a great idea on say a 85% ratio what that number would be ..

daniel039209
daniel039209

XXSPOWER127 said:

daniel039209 said:

this is mathematically correct. I dont know how it could be viewed in another light?

Happy Hump Day what is mathematically correct? Mr E calcs? The issue is - since the start of this ratio - the dow has surged maybe I dont know? 3000 points - or 10-12 % say The NDQ has not - but the ratio has stayed the same This also has a 3 times hit ratio sample size - not significant IMHO Similar to his VIX under whatever only whatever times in the last 40 years did not pan out these things are very abstract

Now a days we need to be looking at things such as what the big boys look at

A) GAMMA B) $NYMO C) $SPXA200R D) DXY / TNX ratio to Stocks and how that has faired with neg covariance

I also like looking at bullish % index - if it gets under 70 that usually leads to a pullback

NOT CRASH SIGNIFICANT.. SIGNIFICANTSIGNIFICANTSIGNIFICANT all the time

i concur with your layout/math. the ratio is not a signal as much as it is a condition. same with the VIX,( for months) its a condition. NOT a crash signal

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