MARKETCOLOR RANKING Table - U.S. Broad-based and Sector Indices

The MARKETCOLOR RANKING TABLE creates a relative strength rating from the MARKETCOLOR profile and compares them to a market group. An index can be compared against other indices or the components that make up an index can be ranked against each other. This feature provides a quick overview of which markets are showing more positive or negative tendencies.

In the above example the different broad-based and sector indices are listed in ranked order from strength to weakness. Once an Index or Sector is isolated, its components can be viewed in ranked order. For example, noting the weakness in the DJT (Dow Jones Transportation Index), XAL (Airline Sector Index) and the XOI (Oil and Gas Sector) a user can go to the XAL ranking table to see which Airline stocks are driving the sector down and have the potential for further declines.

In addition to the ranked order, a summary of key color profiles is presented.

TREND — This is the color position of the Moving Average system.

SIGNAL — This is the color position of a DMI trend following system.

T ABILITY (Trending Ability) — This is the color position of the ADX system showing the market's ability or lack of ability to trend.

RSI — This is the color position of the Relative Strength Oscillator system.

TURN PT — This is the color position of the Slow Stochastic turning point system.

RANK — This is the market's color profile ranking.

The MARKETCOLOR profiles aid in a quick selection of the most positive or negative stocks or sectors with the best trending ability. Neutral stocks or sectors show opportunities for covered or naked short option premium strategies.

Trading Strategies using the MARKETCOLOR Ranking Table

1. Stock Selection – The MARKETCOLOR Ranking table enables the user to quickly isolate which sectors are bid or offered and which component stocks are driving that strength or weakness.
2. Sector Analysis - The US Broad-based and Sector Index Ranking Table provides a macro overview of the market showing which sectors are bid and which are offered.
3. Matched Pairs Trading – The MARKETCOLOR Ranking Table breaks down a sector from strength to weakness quickly isolating potential matched pairs spreading opportunities.
4. Option Volatility Strategies - The MARKETCOLOR Rank of (0) on the table shows the sectors and component stocks that are in a neutral position. These directionless stocks are good candidates of short premium strategies alone or covered.
5. Extreme/Reversal – Stocks or sectors at the upper and lower extremes of the MARKETCOLOR Ranking Table can show good reversal or exhaustion opportunity.
6. Basket Trading – The MARKETCOLOR Ranking Table enables a quick creation of "smart baskets". Traders who use broad based or sector indices as a momentum indicator to trade stocks in those sectors can create "smart" bid baskets and "smart" sell baskets. Bid baskets containing positively ranked MARKETCOLOR stocks and sell baskets containing negatively ranked MARKETCOLOR stocks.
7. Spread Trading – Interest rate strip and yield curve spread trading are available using the Interest Rate MARKETCOLOR tables. Currency cross-rate spreading opportunities can be found in the Foreign Currency MARKETCOLOR tables. Commodity calendar and inter-market spreads can be created using the Commodity MARKETCOLOR tables.