Quote from jack hershey:
To explain the formula.
both cash and index are big numbers.
Their difference would just look like volume on a chart (meaning all the bars would stick up from an axis.)
By taking out (subtracting) the Premium, the bars can appear on either side of a horizontal neutral. Coloring the bars black and red makes it easy to see a trade sentiment. Premium is a "fair" neutral value of the difference of cash and index.
For those who are skilled at "reading" the markets, the pattern also appears on the S/S chart as three successive portions (dominant, non dominant and dominant).
Long ago in the days of ticker tape, the triads were known to some and others just did "up" and "down". Usually, anger resulted on the part of the up and downer's. Fear and anxiety preceded this anger. A good read is Lo (MIT) who measured the big money guys in terms of their anxiety, fear and anger. None he measured were traders in the intraday sense of making money.
Here in this simple math we are just looking at divergence from the mean in MLR where the smart money leads the MLR.
RTM is an "after effect" of the leading indicator (sentiment shift) being invoked. the markets are largely couterintuitive and taking the market's offer is what is being demonstrated in my posts. People mostly confuse my posts as being in the CW box. That box is the financial industry box where the industry makes money on a fees and commision basis instead ofdealing with the market's offer. These are two different fields of endeavor. This thread is a CW oriented thread.
I really do not want to "take over" this thread. So please do not afford me any further "chances".
here is HE, a monkey be
he knows it all, and make it small
with maths he croak, and make a joke
a frog u see, with little wee
most annoying thing, and when he sing
it not like note, that markets quote
he speaks of much, and think it such
that fractal be, the key you see
a fractal be, a term u see
that fools do use, to cover bruise
they only know, what they been show
and that you see, is plain can be
the plan is out, a friend do shout
for he is told, to say in bold
that HE is right, and seldom fright
but truth is clear, HE in fear
just stop and think, what in the ink
it is all bull, nonsense in full
a child can SEE, how wrong it be
for facts are so, that need not know
the key to SEE, what others be
to look for cents, in common sense
no sense be there, then you best scare
for fools you SEE, cost YOU MONEY
so when u see, a fool like HE
just say FUK OFF, you stupid toff
away u go, and play the show
with fools who be, what others SEE
words are small, and may look tall
a chart is fact, and cause to act
all else is fluff, and make it thuf
to help you SEE, that B is BE
TE
