MARCON Advisory System
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, 01-30-2011 at 01:22 PM (3426 Views)
Market Conditions Advisory System.
MARCON is a percentage-scaled Market Advisory System with the scale consisting of five color-coded market advisory levels. These levels are intended to reflect the current market conditions across the broad indexes. This system is created as a means to give the reader an additional way to judge the strength of the markets. As previously stated, this is a MARKET ADVISORY SYSTEM. For the time being MARCON is not intended to give buy/sell signals. MARCON's current status can be seen on my avatar or by clicking on my signature block. This system will be updated over the weekend.
MARCON colors: Red-Extremely oversold, Orange-Prices declining, Yellow-Prices in transition, Blue-Prices rising, &
Green-Extremely overbought.
MARCON represents: The New York Stock Exchange, Dow Jones Transportation Average, Standard & Poors 500, Wilshire 4500 Completion Index, iShares EAFE Index, and PowerShares DB US Dollar Index Bearish Fund.
See Chart below
Represented by a single alphabetic letter: F-The F-Fund, C-The C-Fund, S-The S-Fund, I-The I-Fund.
See Chart above5 Tools used to grade performance: Reference, Interpretation, Momentum, Trend, & Volume.
Reference - Uses 10, 25, 50, 75, & 90 percent price levels wrapped within the 26 week high/low price range. All indexes are judged from within this time frame on the Daily charts. See Chart below
Interpretation - Grades change in trend using 5 colored trendlines, using a basic 123 trend identification, complemented with a 3 day closing confirmation for surety.
See Chart below
Momentum - Uses a 5 Day Simple Moving Average wrapped within an (18, 3) Stochastic graded off the 90, 75, 50, 25, & 10 percentage levels within the 6-month window.
Trend - Uses a 5 Day Simple Moving Average wrapped within a (9, 12) PPO graded off the 90, 75, 50, 25, & 10 percentage levels within the 6-month window.
Volume - Uses a factor 5 Day Simple Moving Average wrapped within a 9 Money Flow Index graded off the graded off the 90, 75, 50, 25, & 10 percentage levels within the 6-month window.
See Chart below