Market Fuel Gauges are research tools offered by Paratrade Systems. They analyze key predictors of future returns and combine them into individual indexes. The gauges have proven to be very effective at forecasting market performance. To be a successful trader, it is important to understand how much upside there is in the S & P 500. That is done by considering all the major factors such as interest rates, fear and the time since the market last (significantly) declined. All these factors are put together and analyzed to create the Stock Market Fuel Gauge which helps to forecast market upside.
A decrease in interest rates means that the economy is getting a push which, in turn, will lift up the stock market. A higher level of fear means that more investors will have reduced holdings so there is more buying power available to come into the market. The final factor is the number of days since the market had a significant pullback. This is important as it means that investors will take some time to get back into their long positions. It provides an opportunity for Paratrade subscribers to buy before everyone else is reinvested. The Stock Market Fuel gauge is calculated by combining all of these factors. If the gauge is low, weak or negative returns are expected and if the gauge is high, it means that high returns are likely.
Paratrade’sMarket Fuel Gauges are an essential to portfolio managers because they can add discipline to their decision-making process. They can also reduce portfolio losses by signaling when to switch into bonds.
Paratrade Systems is the brainchild of Chris Evans, who has more than thirty years of experience in managing global capital market assets. He has also worked at a number of successful hedge funds and managed both taxable and non-taxable portfolios. He holds a degree in economics from Cornell University and is a Chartered Financial Analyst. Currently, he advises various funds using algorithms that make use of the methods described above.
The Market Gauges are available by subscription through the Paratrade website.
Company Name: Paratrade Systems LLC
Contact Person: Press Execuctive
Country: United States