Section 1: The Super Accelerator Model Explanation:
Many of our investors use our Super Accelerator Model for longer term, conservative investing. T he reason is because the Super Accelerator Model is conservative, and has an average of 3 signals a year while catching the big moves as you will see. (The Super Accelerator is based on the physics principle of acceleration & momentum and their relative change of speed and direction.)
There are three elements to the Super Accelerator Model: a. A proprietary, longer term, Super Accelerator Indicator, b. a (Short Term) S.T. Accelerator, and b. a 30 day C-RSI (proprietary indicator).
a. The main component is the Super Accelerator at the top of the chart we posted below. Note the thick red horizontal line in the middle of the Super Accelerator chart section. Above that line is Liquidity Expansion, and below it is Liquidity Contraction. If in Expansion and the trend lines are moving up, then the Inflowing Liquidity coming into the market is aggressive strong. If in Expansion and the trend lines are moving down, then Liquidity is still in positive territory but being reduced ... these are times when the market pulls back or doesn't have enough new capital to push forward.
If the Super Accelerator is in Contraction territory and the trend lines are moving down, then the Inflowing Liquidity is leaving the market. If in Contraction territory and the trend lines are moving up, then Liquidity is being replenished and any down movement is being reduced or stopped. If at the same time, the C-RSI and the S.T. Accelerator are moving up and over their horizontal lines, then an up trending S.T. Accelerator is sending a new up signal.
b. The S.T. Accelerator is a short term measurement of acceleration or deceleration. The same principles in section a. apply. Additionally, many technical analyst have a problem with identifying trend lines because they never really know for sure where to draw them. This Model takes away that dilemma. By drawing a trend line when the S.T. Accelerator is just starting to cross over its horizontal signal line, we get a good trend line that is often a buy or sell signal that is a day or two earlier than other market systems.
c. If all is in accord for an up or down signal, there is one last element that needs to be in place. That element is the strength of the underlying index. From 0 to a reading of +2 is a Danger Condition. From over +2 to +5 is a Caution condition, and above 5 is a pretty strong level. Below 0 with the Accelerators in a down condition is a Sell signal. (We do post a daily matrix with these values for the SPY, QQQ, and IWM every day.)
The SPY Super Accelerator chart below shows the September 2013 time period to March 2014.
Section 2: Daily Indicators that our Subscribers receive every day...
But ... what else do you need to know? Below are some of our Daily Key Indicators ...
"The stock market is about money. Money flows in and stocks go up,
Money flows out and stocks go down." Jesse Livermore
So, below in our Sample Chart section of charts posted every day, we show you just 4 charts (out of the 20+ charts) that directly relate to money flows. These should be considered Livermore type charts because they show you the daily amounts and trending of Money flows. Money Flows in and out of the Stock Market by ... retail investors, Institutional Investors, and Options Investors. Here they are:
1. This first chart shows the daily level of Inflowing or Outflowing Liquidity in the stock market. Here is what to observe: First, the Inflowing Liquidity is in Liquidity Expansion territory. Since it is below the dotted line in that section, it is in the Second Quadrant. The second thing to observe is the triangular pattern outlined by the thick maroon lines. That is called a triangular pattern and as the lines converge, the tops and bottoms converge until there is a breakout above or below the triangle. So, as of January 12th, the Inflowing Liquidity was traveling toward the apex of the triangle where an ensuing breakout will occur. Typically, triangular breakouts occur two-thirds to seven-eights from the end apex ... so we are getting very close to a breakout. (Note: This first chart is updated every day and is found in Section 1 as Chart 2. In that particular chart, there are also three other indicators that are posted each day.)
2. This chart shows the daily Buying and Selling Activity of Institutional Investors on a daily basis. The red line depicts Selling activity and the Blue line depicts the Buying activity. When the Blue line is above the Red line, there is more Buying than Selling, so money is going into the market from Institutional Investors ... when money is going into the market, the market goes up. When the Red line is above the Blue line, money is leaving the market, so the market goes down. (Note: This second chart is updated every day and is found in Section 1 as Chart 3.)
3. This third chart isolates and shows the trending of the Selling done by Institutional Investors on a daily basis. I like this chart because the market by itself is seldom able to go against the huge amounts of money that is controlled by Institutional Investors. This chart shows the trending of Institutional Selling and the actual posted chart has two additional indicators at the top of the chart to help decipher the action going on. (This third chart is updated every day and is found in Section 1 as Chart 4.)
4. This fourth chart shows the daily money changes on stock market Options.. Who cares about the money flow on Options?
You should and here is why: Imagine that a large Institutional Investor or Wall Street firm was going to start buying a lot of stocks tomorrow ... enough to push the market in a given direction. If you were them, wouldn't you take advantage of what you were about to do? To do so, the best ways to take advantage of the situation is to buy something with leverage ... Futures or Options.
Here is how to read this chart: First, I posted a Label 1 and 2 on the chart. If both of these indicators are positive or negative, the market goes in that direction. If one is up and one is down, it is a mixed condition. On Label 1, the thin horizontal black line is the neutral line. Label 1 shows the net Inflowing or Outflowing Liquidity level on Options. Label 2 shows our Momentum Gain/Loss indicator. With the above information, you can determine when the market will have its up and down swings. (Note: This fourth chart is also updated every day and is found in Section 1 as Chart 1.)
Please give some thought about joining us as a subscriber. I truly believe that superior knowledge, data, and stock market models that no one else has will give you the competitive advantage that you need and are looking for. I hope this overview gives you a partial idea of what we do every day for our subscribers.
If you think you may be interested in joining us as a subscriber, then here is the link on how to do it: Subscription Information.
Prior Statistics about the Super Accelerator Model ...
Be Sure also see these links:
MarketTrackerA and MarketTrackerB
Market Performance Study conducted by Paul Hooper of Markettracker.com