This article was first published on Stories by Cindicator on Medium
Dozens of traders tested these indicators and one of them, CalvinXTZ, shared a strategy for trading S&P 500 options, generating +141% in just five weeks from May 10 thru June 11, 2020 This post explains how he did it.
What are Cindicator’s Macro Sentiment Indicators?
Macro Sentiment Indicators are based on weekly questions about business, economics and the political environment, present and future.
Every weekend, users get six questions about:
- Current levels of economic uncertainty;
- Current and future levels of unemployment;
- The future attractiveness of the business environment;
- Current and future political stability.
Here is an example:
What is the current level of economic conditions in the country you live in? (10 points per answer, 0–50% negative, 50–100% positive)
Analysts give their answer as a percentage between 0% and 100%.
Each indicator is created using an algorithm to average the answers. The difference between the current and the previous week adds another important dimension to it.
How to interpret macro indicators
The key to interpreting Macro Sentiment Indicators is watching for changes and trends.
When there is a big difference between the new indicator and the one for the week before, this suggests that there is a major shift in sentiment.
For example, on 31 May, the Employment Situation Current indicator increased from 37 to 59. That’s 62% higher than the previous week.
Other indicators also changed significantly:
- The Employment Situation Future indicator was +46% higher than the previous week; ...
To keep reading, please go to the original article at:
Stories by Cindicator on Medium