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| FREQUENTLY
ASKED QUESTIONS |
| Q: |
Do
you compute your predictions for an Index from the
open to the close or from the close of trading to the
next day's close? Do you compute your results from
the initial prediction or the last one (I notice your
prediction can and does change in the first hour of
trading)?
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| A: |
All
Intra-day Momentum and related indicators, whether for
Index or Stock, are calculated to display anticipated
trend for the current session from OPEN through to CLOSE.
All indicators are established well before market open
and generally will not change through the course of the
day. On occasion there may be a change in the MarketMeter’s
ID gauge just before or just after the market open. This
can be caused by various factors that can come into play
during pre-market activity, and can in turn change the
markets direction for the day. These instances are rare
as the pre-market “event” would have to be
significant enough to influence the whole market. The
Index (NDX) gauges will fluctuate to a greater extent
than the MarketMeter’s ID gauge, and will do so
throughout the course of the day. They are tied directly
to the MarketMeter, however their scope is not as broad
for which reason they tend to have greater volatility
which will depend on the stocks they are comprised of.
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| Q: |
Today,
the MarketMeter is reading positive and the QQQQ
gauge was neutral then negative. Should this be interpreted
as no signal of direction (conflicting signals),
should the MarketMeter trump the QQQQ gauge (for
trading the Q's), or should I consider the index
reading as the predicted direction of momentum?
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| A: |
The
Index reading (QQQQ) being specific to the index only
may tend to be more erratic as it focuses solely on
the Index itself. The MarketMeter ID reading is a lot
steadier as it tracks the "entire" market.
When there is a conflict, or when any of the Index
specific Indicators appears "indecisive" we
recommend the MarketMeter's ID gauge be used if one
really must trade that Index Fund on that day, or maybe
consider refraining from any activity on the Index
in question. To clarify, when an Index Indicator and
the MarketMeter's ID gauge are aligned, there is far
greater possibility that the indicated trend will be
the outcome for the day
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| Q: |
I
am looking to enter a position (long or short) in
the QQQQ at 10:30 each market day and close out that
position at the end of that market day. I am not
available (nor do I want to be) to sit with my computer
all day. I just want to enter the position in the
morning (mid-morning works best for me) and close
it at market close in the afternoon. What do you
suggest?
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| A: |
In
your case both the MarketMeter and eQuoteNDX screen
should be used. However, we do not provide a track
record of the individual Indicators located on the
eQuoteNDX screen as they are all derived from the formulas
and values incorporated into the MarketMeter’s
ID gauge. Keep in mind however that both Indicators
(MarketMeter and eQuoteNDX) are intended to forecast
the day’s trend (Momentum) but the eQuoteNDX
screen also tries to display any immediate change in
Momentum that may be detected, making it on occasion
more volatile than the MarketMeter. We do have many
users who are strictly interested, such as yourself,
in trading only the QQQQ (or similar Index Fund) and
for this we recommend the MarketMeter’s ID gauge
be used as the primary Indicator, and the eQuoteNDX
as the secondary, where the first one will give you
indication which way the QQQQ is poised to trend for
the day, and the second will provide you with the immediate
momentum/trend. We would recommend you spend some time
simply observing the mentioned indicators to become
more familiar and comfortable with them
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| Q: |
I
am very interested in trading the SPY and QQQQ's
and was wondering if you had any additional package
for day trading these instruments?
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| A: |
Unfortunately,
we do not have any other packages at this time for
Day Trading QQQQ, SPY and other Index Tracking Funds.
The MarketMeter and eQuoteNDX are all that's available.
We have found that there is some interest in these
investment vehicles which is why we created the eQuoteNDX,
however at this point we have no intention of trying
to expand on this. We have found that most of our Day
Traders and even Investment Tools subscribers prefer
to trade with stocks, the main reason being higher
volatility meaning potential higher returns per session.
That being said, the information currently provided
within the eQuoteNDX screen should be sufficient to
successfully trade the QQQQ and other Index tracking
funds.
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| Q: |
If
my interest were trading the Rydex Dynamic Funds,
you recommend using the MarketMeter as the main recommendation
of the direction to go for the day and then if the
eQuoteNDX confirms that direction at the time of
decision (a trade must be placed by 10:30AM to receive
10:45 NAV), then you would enter that position (long
or short fund) and then exit at the end of the day.
If the eQuoteNDX doesn't confirm the direction of
the MarketMeter, you could simply stay in cash that
day. Is this the general idea or am I misinterpreting
the concept?
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| A: |
We
normally tell our users to stay in cash for the day
if there is a conflict between the MarketMeter and
readings on the eQuoteNDX screen. Keep in mind that
the MarketMeter was designed primarily to track stock
markets, in other words stocks. It can of course be
used (and is) very effectively on funds that are in
some way directly tied to stock movement. The most
obvious example being the QQQQ. Most users prefer to
establish a position at the very onset of regular hours
trade (9:30 – 10:00AM ET) which is why we provide
pre-market and preliminary readings on all instruments,
to provide our users with information which they may
evaluate prior to the start of trade. They will use
both the MarketMeter and eQuoteNDX screen, where the
first will determine the position for the day, and
the second is watched to confirm that position and
ensure nothing has changed along the way. If you are
contemplating entering your position later in the morning,
you may want to keep this in mind. If at 10:30AM there
is a disparity between the MarketMeter and eQuoteNDX,
this may not be as significant as it would be at 9:30AM,
as the eQuoteNDX screen will begin adjusting to display
current momentum as the day begins to progress, which
may be temporary and not hold for the rest of the day.
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