US SMO Institutional Protection Indicator
The US SMO Institutional Protection Indicator shows the increase of hedges and reallocations of institutional investors for the us stock market.
This behavior can often be seen a few days or weeks before a stock market decline.
Institutional investors are usually better informed and implement a consistent hedging strategy.
This indicator shows the hedging behavior of institutional investors in relation to the price development of the stock market.
If these two trends are different and exceed threshold values, a signal is displayed. This behavior can often be seen a few days or weeks before a stock market decline.
The hedges of the institutional investors usually have a maturity of 30-60 days. Depending on the situation, longer periods are of course also possible.
Use the US SMO Institutional Protection Indicator to optimize your investment and trading activities.
Protect your portfolio.
Check your LONG positions.
If you are a trader, SHORT trade opportunities may arise.
How it works!
The US SMO Institutional Protection Indicator shows the increase in hedging and reallocation by institutional investors for the American stock market.
In 'normal' market phases, when stock prices are rising, the need for hedging by institutional investors decreases.
When stock prices are rising, institutional investors' hedging is increased, a signal is displayed.
The picture shows the rough functioning of the indicator.
US SMO Institutional Protection Indicator - Sample
In the screenshot of the historical course of the "US SMO Institutional Protection Indicator" the signals of the last years can be seen.
If we assume that the hedges of the institutional investors had a maturity of plus minus 30-60 days, then the price declines in the S&P 500 or Dow Jones could be hedged very well.
If you have any questions or suggestions, please do not hesitate to contact us.
Never lose money!
Protect your investments and portfolio positions. Use the US SMO Institutional Protection Indicator to know when it makes sense to protect your positions.
Why are impairments or price declines so critical?
The problem with price declines is the amount of price recovery that is necessary to compensate for the previous price decline.
The size of the price recovery must be much larger than the previous price decline. Large price recoveries are not easy.
How high the recovery must be is shown in the graphs with four examples.
Optimize your investment and trading activities with the US SMO Institutional Protections Indicator.
You have the opportunity to use the full power of the Institutional Signals.
With our Premium Service you can use the US SMO Institutional Protections Indicator.