Charts to Follow
by Steve Blumenthal, CEO, CMG Capital Management Group
One of the charts I like to follow is Don’t Fight the Tape or the Fed. The chart’s bottom clip plots the Simplified Tape and Monetary Indicators. These indicators are a combination of NDR’s Big Mo Multi-Cap Tape Composite and the 10-Year Treasury Yield percentage. As evidenced by the S&P 500 gain per annum based on composite indicator levels, this indicator supports the notion that we should not fight the Tape or the Fed. I will continue to post this chart from time to time in Trade Signals. Note the recent move to a -1 score. The orange arrows indicate gain per annum in two different time periods when -1. We do not trade a strategy following this process. I like to keep an eye on this chart yet my personal favorite trend indicator remains Big Mo.