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The E-Book of Technical Market Indicators www.wallstreetcouriercom The E-Book of Technical Market Indicators by Wall Street Courier Version 1.1 office@wallstreetcourier.com www.wallstreetcouriercom Page 1 The E-Book of Technical Market Indicators www.wallstreetcouriercom Preface The transparency of the American markets offers an array of indicators and allows deep insights of prevailing sentiment. You find the activities of NYSE members like specialists and floor traders, public and odd lot short sales, the Short Interest Ratio as well as the large block transactions of the institutional investors published every week. Other tools for technical analysis include trend indicators, daily advances and declines, daily new highs and lows, volume, indices, put/call ratios and other useful information like Stochastics, RSI, MACD, TICK and more. The problem is only that all these indicators contradict each other most of the time. Countless books have been written on this subject, and

no matter how many will be written in the future: always be aware that there is no such thing as the Holy Grail of the stock market. But some people are more successful than others and the answer is quite simple: No indicator is right all the time and you dont have to be right all the time. Just be right a higher percentage of the time than wrong. Choose some reliable indicators and stick to them. Dont follow some indicators for a while and switch to some others if they fail Dont be a technician in the first half of the year and a fundamentalist the next half. Be consistent and disciplined in your approach. Dont abandon a good indicator because you think this time everything is different. It takes of course a lot of guts because the opinions of the most widely quoted gurus of Wall Street are usually contrary to your indicators at that time. This is much easier if you dont use margin. You will sleep a lot better if you buy fifty shares of IBM with the money you can spare than two

hundred shares on credit. Happy Trading Wall Street Courier www.wallstreetcouriercom Page 2 The E-Book of Technical Market Indicators www.wallstreetcouriercom Table of Content Advance-Decline Indicators .5 Advance-Decline Line .5 Advance-Decline Ratio.7 Upside-Downside Volume Ratio .8 Upside-Downside Volume Line .9 Upside-Downside Volume Net Difference .11 Advance-Decline Net Difference .12 Global Futures Advance-Decline Index.13 Global Futures Upside-Downside Volume Index.13 Market Indicators .14 High-Low Differential Index .14 High-Low Ratio .15 Global Futures High-Low Index.16 Global Futures Bottom Indicator .16 Cycles .19 Large Block Index .19 Short Term Trading Index (ARMS Index or TRIN) .20 Trend Indicator .22 CBOE Volatility Index (VIX).23 Index Options Put/Call Ratio .23 Call/Put Ratio .24 Global Futures Put/Volume Ratio.25 Smart Money Flow Index .26 Global Futures Timing Indicator .27 Global Futures Market Timer Index.28 Global Futures Fear Indicator .29 Wall Street

Courier Index .29 Global Futures Trading Index.30 Global Futures Speculation Index .31 Program Trading .32 Calendar Spread .33 Odd-Lot Differential Index .34 Page 3 The E-Book of Technical Market Indicators www.wallstreetcouriercom Short Sales Statistics.35 The NYSE Short Interest Ratio .35 Odd-Lot Short Sales Ratio .36 Floor Traders Short Sales Ratio.36 Specialist Short Sales Ratio.37 NYSE Member Short Sales Ratio .38 Public Short Sales Ratio .38 Odd-Lot Balance Index .39 Odd-Lot/Floor Trader Short Sales Ratio.40 Global Futures Odd-Lot/Specialist Short Sales Ratio.40 Global Futures Public/Member Short Sales Ratio .41 Public/Specialists Short Sales Ratio .42 High readings indicate heavy shorting by the public (the so called crowd) and therefore bottoms, low readings indicate tops. 42 Global Futures NYSE Member Trading Indicator .43 Sentiment Indicators.44 Investor Sentiment .44 Commitments of Traders Report .46 Appendix.48 Dow Jones Industrial.48 S&P 500.48 Risk Statement .49

Page 4 The E-Book of Technical Market Indicators www.wallstreetcouriercom Advance-Decline Indicators Advance-Decline Line The Advance-Decline Line is a market breadth indicator and should be compared to the other market indices like the Dow Jones or S&P 500. Daily or weekly NYSE data is used in the calculation. Because the Advance-Decline Line reflects the action of the general market, any divergences are watched closely by market technicians. As long as the Dow and the Advance-Decline Line are moving in the same direction the trend will continue. If the Dow makes a new high which is not confirmed by a high of the Advance-Decline Line, caution is warranted. Vice versa, if the Dow makes a new low and the Advance-Decline Line doesnt you should cover your short sales. WallStreetCourier.com 160000 ADVANCE - DECLINE LINE WEEKLY 140000 120000 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27

98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 100000 To calculate your own weekly Advance-Decline Line is very simple and you can begin your calculations at any time. Just pick a large enough base number like 100000 Then you calculate each week (or day) the difference between advances and declines by adding the advances and subtracting the declines. If you have 1269 advances and 1457 declines on your first week, the reading of your newly created weekly Advance-Decline Line would be 99812 (example below). Page 5 The E-Book of Technical Market Indicators Date www.wallstreetcouriercom Advances 09.0695 16.0695 23.0695 30.0695 07.0795 14.0795 21.0795 28.0795 04.0895 11.0895 18.0895 25.0895 01.0995 08.0995 1269 1714 1591 1346 2032 1507 894 1891 1404 1187 1624 1486 1656 1903 Declines 1457 975 1148 1348 692 1191 1875 845 1291 1489 1043 1176

1011 759 A-D Line 100000 99812 100551 100994 100992 102332 102648 101667 102713 102826 102524 103105 103415 104060 105204 The Advance-Decline Line gave a useful example in 1999. During the strong bull market the advance was quite broad and the A/D Line moved in tandem with the Dow. But when the Dow made new highs in the beginning of 1999 the A/D Line was already lagging behind, indicating a weakening of the general market. Internet mania and technology craze kept the market going for a while. Page 6 The E-Book of Technical Market Indicators www.wallstreetcouriercom Advance-Decline Ratio The Advance-Decline Ratio is also market breadth indicator. It is calculated by dividing the number of advancing issues by the number of declining issues using daily or weekly NYSE data. It works very well as an overbought/oversold indicator and as a momentum indicator. A moving average should be used to smooth out the swings Date 09.0695 16.0695 23.0695 30.0695 07.0795 14.0795 21.0795 28.0795

04.0895 11.0895 18.0895 25.0895 01.0995 08.0995 Advances 1269 1714 1591 1346 2032 1507 894 1891 1404 1187 1624 1486 1656 1903 Declines 1457 975 1148 1348 692 1191 1875 845 1291 1489 1043 1176 1011 759 A/D * 100 10-Week MA 87 176 139 100 294 127 48 224 109 80 156 126 164 251 138 145 140 143 158 This chart shows you the weekly NYSE Advance-Decline Ratio on a 10-week moving average. Readings below 90 indicate intermediate bottoms and readings above 170 tops WallStreetCourier.com 2,40 ADVANCE-DECLINE RATIO 10-DAY MOVING AVERAGE 2,00 1,60 1,20 0,80 95-08-11 95-10-06 95-12-01 96-01-26 96-03-22 96-05-17 96-07-12 96-09-06 96-11-01 96-12-27 97-02-21 97-04-18 97-06-13 97-08-08 97-10-03 97-11-28 98-01-23 98-03-20 98-05-15 98-07-10 98-09-04 98-10-30 98-12-25 99-02-19 99-04-16 99-06-11 99-08-06 99-10-01 99-11-26 00-01-21 00-03-17 00-05-12 00-07-07 00-09-01 00-10-27 00-12-22 01-02-16 01-04-13 01-06-08 0,40 Page 7 The E-Book of Technical Market Indicators www.wallstreetcouriercom

Upside-Downside Volume Ratio The Upside-Downside Volume Ratio is also market breadth indicator. It is calculated by dividing the volume of advancing issues by the volume of declining issues, using daily or weekly NYSE data. It works very well as an overbought/oversold indicator and as well as a momentum indicator. A moving average should be used to smooth out the swings Date 09.0695 16.0695 23.0695 30.0695 07.0795 14.0795 21.0795 28.0795 04.0895 11.0895 18.0895 25.0895 01.0995 08.0995 Adv. Volume 673210 943121 964871 674725 867512 945574 755969 1008468 733204 565588 796723 629338 727349 746298 WallStreetCourier.com 180 Decl. Volume 732827 565840 666807 765076 353025 756197 1027248 584579 703285 669580 615752 603130 553140 418632 AV/DV*100 10-Week MA 92 167 145 88 246 125 74 173 104 84 129 104 131 178 130 133 127 126 135 UPSIDE/DOWNSIDE VOLUME RATIO 160 140 120 100 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12

97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 80 Page 8 The E-Book of Technical Market Indicators www.wallstreetcouriercom Upside-Downside Volume Line The Upside-Downside Volume Line is a market breadth indicator and should be compared to the other market indices like the Dow Jones or S&P 500. Daily or weekly NYSE data is used in the calculation. Because the Upside-Downside Volume Line reflects the action of the general market, any divergences are watched closely by market technicians. As long as the Dow and the Upside-Downside Volume Line are moving in the same direction the trend will continue. If the Dow makes a new high which is not confirmed by a high of the Upside-Downside Volume Line, caution is warranted. It is more affirmative than the Advance-Decline Line and it gave a perfect sell signal in

January 2000, when the Dow made a new high and the Upside-Downside Volume Line lagged behind (charts below). Vice versa, if the Dow makes a new low and the Upside-Downside Volume Line doesnt, you should cover your short sales. To calculate your own weekly Upside-Downside Volume Line is very simple and you can begin your calculations at any time. Just pick a large enough base number like 1000000. Then you calculate each week (or day) the difference between the upside volume and downside volume by adding the volume of advancing issues and subtracting the volume of declining issues. If you have an upside volume of 673210 and a downside volume of 732827 on your first week, the reading of your newly created weekly Upside-Downside Volume Line would be 940383 (example below). Date 09.0695 16.0695 23.0695 30.0695 07.0795 14.0795 21.0795 28.0795 04.0895 11.0895 18.0895 25.0895 01.0995 08.0995 Upside Volume 673210 943121 964871 674725 867512 945574 755969 1008468 733204 565588 796723 629338

727349 746298 Downside Volume 732827 565840 666807 765076 353025 756197 1027248 584579 703285 669580 615752 603130 553140 418632 U-D Volume Line 1000000 940383 1317664 1615728 1525377 2039864 2229241 1957962 2381851 2411770 2307778 2488749 2514957 2689166 3016832 Page 9 The E-Book of Technical Market Indicators www.wallstreetcouriercom Here is a beautiful example of the Upside-Downside Volume Line. Volume moves the markets and this indicator gave a perfect sell signal in December 1999, when the Dow made a new high and the Upside-Downside Volume Line didnt. It would have kept you also on the right side of the market right to the top. WallStreetCourier.com ADVANCE - DECLINE VOLUME LINE 25000000 23000000 21000000 19000000 17000000 15000000 13000000 11000000 DIVERGENCE 9000000 7000000 5000000 3000000 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09

98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 1000000 WallStreetCourier.com 12000 DOW JONES WEEKLY CLOSE 11000 10000 9000 8000 DIVERGENCE 7000 6000 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 5000 Page 10 The E-Book of Technical Market Indicators www.wallstreetcouriercom Upside-Downside Volume Net Difference Another method used by market technicians is to calculate the net difference between the upside- and downside volume. Daily or weekly data can be used The net difference between upside- and downside volume is calculated weekly and the result is added. To smooth out the swings, a 10-week

moving average should be applied Below there is an example for weekly calculations: Date Adv. Volume 09.0695 16.0695 23.0695 30.0695 07.0795 14.0795 21.0795 28.0795 04.0895 11.0895 18.0895 25.0895 01.0995 08.0995 673210 943121 964871 674725 867512 945574 755969 1008468 733204 565588 796723 629338 727349 746298 WallStreetCourier.com 1000000 Decl. Volume 732827 565840 666807 765076 353025 756197 1027248 584579 703285 669580 615752 603130 553140 418632 Net Difference -59617 377281 298064 -90351 514487 189377 -271279 423889 29919 -103992 180971 26208 174209 327666 Cumulative 0 -59617 317664 615728 525377 1039864 1229241 957962 1381851 1411770 1307778 1488749 1514957 1689166 2016832 UP - DOWNVOLUME NET DIFFERENCE 500000 0 -500000 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25

00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 -1000000 Page 11 The E-Book of Technical Market Indicators www.wallstreetcouriercom Advance-Decline Net Difference Another method used by market technicians is to calculate the net difference between advances and declines. Daily or weekly data can be used The net difference between advances and declines is calculated weekly and the result is added. To smooth out the swings, a 10-week moving average is applied. Below there is an example for weekly calculations: Date 09.0695 16.0695 23.0695 30.0695 07.0795 14.0795 21.0795 28.0795 04.0895 11.0895 18.0895 25.0895 01.0995 08.0995 Advances 1269 1714 1591 1346 2032 1507 894 1891 1404 1187 1624 1486 1656 1903 Declines 1457 975 1148 1348 692 1191 1875 845 1291 1489 1043 1176 1011 759 Net Differ. Cumulative 10-Week MA -188 -188 739 551 443 1182 -2 441 1340 1338 316 1656 -981 -665 1046 65 113 1159 -302 -189 535,0 581 279 581,7 310 891 615,7 645 955 593,0 1144 1789

727,8 The chart went from extremely overbought in July 1997 to heavily oversold in September 1998: 2000 ADVANCE - DECLINE NET DIFFERENCE 1500 1000 500 0 -500 -1000 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 -1500 Page 12 The E-Book of Technical Market Indicators www.wallstreetcouriercom Global Futures Advance-Decline Index This indicator is calculated by dividing the weekly number of advances and declines by the number of total issues traded. A 10-week moving average is applied to smooth out the swings. WallStreetCourier.com 0,60 ADVANCE - DECLINE INDEX WEEKLY 0,55 ADVANCES 0,50 0,45 0,40 0,35 DECLINES 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23

97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,30 Global Futures Upside-Downside Volume Index This indicator is calculated by dividing the weekly upside and downside volumes by the weekly total volume. A 10-week moving average is applied to smooth out the swings WallStreetCourier.com 0,56 0,54 UPSIDE - DOWNSIDE VOLUME INDEX WEEKLY UPSIDE VOLUME 0,52 0,50 0,48 0,46 0,44 0,42 y 0,40 0,38 DOWNSIDE VOLUME 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,36 Page 13 The E-Book of Technical Market Indicators

www.wallstreetcouriercom Market Indicators High-Low Differential Index Like the advance-decline line, the high-low indicators produce signals when they diverge from the action of the indices like the Dow Jones or the S&P 500. It is considered unhealthy for the market climate if the indices make new highs without many stocks reaching new highs at the same time. Chart technicians use various methods to spot divergences from the major market indices. The High-Low Differential Index produces good longer term signals when it diverges from the action of the Dow over a prolonged period of time. Daily or weekly data may be used and the calculation of this indicator is very simple; just subtract the daily or weekly new lows from the new highs to get the differential and apply a moving average to smooth out the swings. If you have 479 new highs and 31 new lows on your first week, the reading of your newly created weekly High-Low Differential Index would be 448 (example below). Date

09.0695 16.0695 23.0695 30.0695 07.0795 14.0795 21.0795 28.0795 04.0895 11.0895 18.0895 25.0895 01.0995 08.0995 15.0995 Highs Lows 479 371 491 292 485 635 331 464 402 337 338 336 397 530 664 31 42 56 42 29 36 50 43 42 47 53 46 50 31 43 Differential 448 329 435 250 456 599 281 421 360 290 285 290 347 499 621 10-week MA 387 371 367 358 383 399 Page 14 20 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26

01-03-23 01-05-18 The E-Book of Technical Market Indicators WallStreetCourier.com 1500 WallStreetCourier.com www.wallstreetcouriercom HIGH-LOW DIFFERENTIAL INDEX 1000 500 0 -500 -1000 -1500 High-Low Ratio The High-Low Ratio is the number of new highs divided by the numbers of new lows. Daily or weekly data may be used in the calculation. Readings do get sometimes very distorted if there are for instance about 600 new highs and 5 new lows or vice versa. A long-period moving average should therefore be applied. HIGH-LOW RATIO WEEKLY 18 16 14 12 10 8 6 4 2 0 Page 15 The E-Book of Technical Market Indicators www.wallstreetcouriercom Global Futures High-Low Index This indicator is calculated by dividing the weekly number of highs and lows by the number of total issues traded. A 10-week moving average is applied to smooth out the swings. Like the advance-decline line, this indicator produces signals when it diverges from the action of the indices like the

Dow Jones or the S&P 500. It is considered unhealthy for the market climate if the indices make new highs without many stocks reaching new highs at the same time. WallStreetCourier.com HIGH -LOW INDEX 0,25 10- WEEK MOVING AVERAGE 0,23 0,21 0,19 HIGHS LOWS 0,17 0,15 0,13 0,11 0,09 0,07 0,05 0,03 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,01 Global Futures Bottom Indicator The Global Futures Bottom Indicator was developed by R. Koch of Wall Street Courier. To our knowledge there is no previous mentioning of this indicator in any financial publication. It does not appear very often but it is extremely reliable when the market is at a turning point. It prevents long-term investors from buying at

the wrong time and works especially well for option traders because of its incredibly perfect timing. Unfortunately this indicator does not tell you when to sell. Set yourself a limit if you trade options, or use trailing stop-loss orders if you are a long-term investor. Page 16 The E-Book of Technical Market Indicators www.wallstreetcouriercom Check BARRON`S every Monday for the weekly: • CALLS ADVANCES • CALLS DECLINES • PUTS ADVANCES • PUTS DECLINES • (CBOE MARKET REPORT) It takes you only five minutes every week to calculate the Global Futures Bottom Indicator: • Divide the number of calls advancing by the number of calls declining • Divide the number of puts declining by the number of puts advancing • Subtract the result of calls adv./decl from the result of puts decl/adv • Plot the difference on a chart and ignore the decimal. Example Prev.Week This Week Calls Adv. Calls Decl 23000 11000 9000 26000 Unch. Puts Adv. Puts Decl 8000 7000

25000 6000 24000 8000 Unch. 10000 7000 You calculate as follows: 23000 : 11000 = 2,09 25000 : 7000 = 3,57 Difference = 148 (357 minus 209) 9000 : 26000 = 0,34 8000 : 24000 = 0,33 Difference = - 1 ( 33 minus 34) Date 09.0695 16.0695 23.0695 30.0695 07.0795 14.0795 21.0795 28.0795 04.0895 11.0895 18.0895 25.0895 Calls Calls Adv. Decl. 12656 17696 14390 10933 21611 17819 9071 18152 11159 13081 19594 9760 14215 9818 8550 17902 7779 12190 22844 7554 21092 19336 12741 16547 Calls A/D 0,89 1,80 1,68 0,61 2,78 1,46 0,40 2,40 0,53 0,68 1,54 0,59 Puts Puts Adv. Decl. 9590 5647 6014 12571 4894 8627 15943 4748 14649 12100 6930 10368 13879 18431 13839 11735 20146 15531 9405 17237 11905 14522 20184 11238 Puts D/A Bottom Indicator 1,45 3,26 2,30 0,93 4,12 1,80 0,59 3,63 0,81 1,20 2,91 1,08 56 146 62 32 134 34 19 123 28 52 137 49 Page 17 The E-Book of Technical Market Indicators www.wallstreetcouriercom WallStreetCourier.com THE GLOBAL FUTURES BOTTOM INDICATOR 475

425 375 325 275 225 175 125 75 25 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 -25 WallStreetCourier.com THE GLOBAL FUTURES BOTTOM INDICATOR 50,00 40,00 30,00 20,00 BUY 10,00 0,00 -10,00 BOTTOM 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 -20,00 Any zero or minus reading indicates a bottom. Since this indicator was invented and developed it only failed twice on a minus reading if compared to the Dow Jones. This was due to panic

selling on August 3rd and August 24th 1990 when Saddam invaded Kuwait. • Readings between 1 and 5 are also very reliable and indicate intermediate bottoms in bull markets. • Readings up to 25 may work but should be counterchecked with other indicators such as the Global Futures Market Timing Indicator. • Readings above 600 are good breadth indicators and show you that a powerful market move on the upside is to be expected. • Ignore all other readings. Page 18 The E-Book of Technical Market Indicators www.wallstreetcouriercom For your convenience there is a track record attached (377 kb) back to 1985 for you to check the value of this indicator. Plot the numbers on a chart and compare it with previous market action. Feel free to make use of our indicator if you find it useful Feel also free to publish it as long as you mention the source and call it the Global Futures Bottom Indicator. Download the track record at

http://wwwwallstreetcouriercom/technician/timingindicators/track-recordhtm Cycles Cycle analysis has a long history and is also part of technical analysis. All markets appear to be subject to cyclical patterns and forces caused by economic influences and countless other factors. Stock market movements seem to take place with cyclical regularity and timing your trades to coincide with anticipated cyclical movements can be very rewarding. Wall Street Courier offers some very reliable cycles for subscribers Large Block Index The Large Block Index is calculated from the number of upticks and downticks in large block transactions of single trades of 10 000 shares and over. An uptick is at a price higher than the last previous trade and initiated by a buyer. A downtick is at a price lower than the previous trade and initiated by a seller. The rationale behind the Large Block Index is quite simple. It measures activities and extremes in institutional sentiment and behavior When the ratio of

upticks rises to very high levels, it indicates that the institutions are buying heavily, reaching a fully invested position and therefore lowering their cash reserves. Conversely, when the ratio of downticks rises to high levels, it indicates that the institutions are selling and are raising cash. When the institutional behaviour reaches extremes, the market will turn in a contrary direction. This indicator has often signaled major reversals and has also prevented investors from plunging into the market at the wrong time. The chart below shows you this indicator on a 10-day moving average. Page 19 The E-Book of Technical Market Indicators www.wallstreetcouriercom WallStreetCourier.com THE GLOBAL FUTURES LARGE BLOCK INDEX 1,50 1,45 1,40 1,35 1,30 1,25 1,20 1,15 1,10 1,05 1,00 0,95 0,90 0,85 0,80 10-DAY MOVING AVERAGE SELL 98-08-14 98-09-11 98-10-09 98-11-06 98-12-04 99-01-01 99-01-29 99-02-26 99-03-26 99-04-23 99-05-21 99-06-18 99-07-16 99-08-13 99-09-10 99-10-08 99-11-05

99-12-03 99-12-31 00-01-28 00-02-25 00-03-24 00-04-21 00-05-19 00-06-16 00-07-14 00-08-11 00-09-08 00-10-06 00-11-03 00-12-01 00-12-29 01-01-26 01-02-23 01-03-23 01-04-20 01-05-18 01-06-15 BUY Short Term Trading Index (ARMS Index or TRIN) The Short Term Trading Index was invented over 30 years ago by Richard Arms and is also known as ARMS Index. It is calculated by dividing advancing issues by declining issues and advancing volume by declining volume. The first result is then divided by the latter and the result is the TRIN. If the index is above one, the average volume of stocks that fell on the NYSE was greater than the average volume of stocks that rose and vice versa. But it is most confirmative when it reaches extremes This indicator rises sharply when the market is most depressed and selling is climaxing, and falls to very low levels during buying frenzies. Date 13.0601 14.0601 15.0601 18.0601 19.0601 20.0601 21.0601 22.0601 25.0601 26.0601 27.0601 Adv. 1521 927 1437 1309

1498 1823 1738 1243 1301 1778 1811 Decl. 1561 2150 1588 1776 1541 1269 1352 1814 1777 1294 1268 A/D Upvol. Downvol U/D Vol 0,97 384035 657357 0,58 0,43 218634 997425 0,22 0,90 649006 904083 0,72 0,74 408501 682268 0,60 0,97 543321 615409 0,88 1,44 716273 610436 1,17 1,29 905813 547728 1,65 0,69 439011 722679 0,61 0,73 332607 682239 0,49 1,37 577414 605567 0,95 1,43 462680 657256 0,70 TRIN 10- MA 1,67 1,97 1,26 1,23 1,10 1,22 0,78 1,13 1,50 1,44 1,33 2,03 1,37 Page 20 96-01-02 96-02-27 96-04-23 96-06-18 96-08-13 96-10-08 96-12-03 97-01-28 97-03-25 97-05-20 97-07-15 97-09-09 97-11-04 97-12-30 98-02-24 98-04-21 98-06-16 98-08-11 98-10-06 98-12-01 99-01-26 99-03-23 99-05-18 99-07-13 99-09-07 99-11-02 99-12-28 00-02-22 00-04-18 00-06-13 00-08-08 00-10-03 00-11-28 01-01-23 01-03-20 01-05-15 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26

99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 The E-Book of Technical Market Indicators 28.0601 29.0601 02.0701 03.0701 1882 1938 1598 1592 1,30 1211 1141 1468 1349 WallStreetCourier.com www.wallstreetcouriercom 1,55 1,70 1,09 1,18 877241 964950 694667 307258 423609 759013 399965 304648 2,07 1,27 1,74 1,01 0,75 1,34 0,63 1,17 WallStreetCourier.com SHORT TERM TRADING INDEX WEEKLY (TRIN) 4-WEEK MOVING AVERAGE BUY 1,10 0,90 SELL 0,70 1,70 TRIN DAILY 10-DAY MOVING AVERAGE 1,45 BUY 1,20 0,95 0,70 SELL Page 21 1,24 1,25 1,19 1,20 The E-Book of Technical Market Indicators www.wallstreetcouriercom Trend Indicator Why are some traders more successful than others? There are probably as many answers as there are traders out there. But you will undoubtedly agree that most of the money is being made in a trend, especially as far as options and futures are concerned. In options trading

your biggest enemy by far is time. You need to have the patience and discipline to wait for a trend in the market in order to succeed on the long run. The same rule applies to any short-term oriented trader. The Global Futures Trend Index shows you clearly when to enter the market. This index is computed by dividing the daily highs by the sum of the daily highs and lows. A 10-week moving average is applied to smooth out the swings. As long as the readings of this index stay above the 80%-level there is a solid bullish trend in progress. Any weakness should be used to go long or to buy call options, preferably of stocks which are in a clear uptrend, or stock index options. Readings below 20 indicate a bearish trend. Strong days should be used to short stocks which are already weak, or to buy put options. As long as this indicator is in neutral territory dont do anything unless you are a savvy stockpicker, insider or a long-term value investor. WallStreetCourier.com 1,00 0,90 THE

GLOBAL FUTURES TREND INDEX BULLISH TREND 0,80 0,70 0,60 0,50 TRADING RANGE MARKET 0,40 0,30 0,20 0,10 BEARISH TREND 96-01-02 96-02-27 96-04-23 96-06-18 96-08-13 96-10-08 96-12-03 97-01-28 97-03-25 97-05-20 97-07-15 97-09-09 97-11-04 97-12-30 98-02-24 98-04-21 98-06-16 98-08-11 98-10-06 98-12-01 99-01-26 99-03-23 99-05-18 99-07-13 99-09-07 99-11-02 99-12-28 00-02-22 00-04-18 00-06-13 00-08-08 00-10-03 00-11-28 01-01-23 01-03-20 01-05-15 0,00 Page 22 The E-Book of Technical Market Indicators www.wallstreetcouriercom CBOE Volatility Index (VIX) VIX computes volatility of four OEX contracts in two nearby months and is published daily by the CBOE. Options selected for this index are one call and one put just out of the money, and one call and one put just in the money, for each of the two front months of the OEX (S&P 100). Extremely high readings of VIX indicate bottoms and low readings tops VOLATILITY INDEX (VIX) WEEKLY 50 40 30 20 10 96-01-05 96-03-01 96-04-26

96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0 Index Options Put/Call Ratio This indicator is calculated by dividing the weekly volume of S&P 100 call options by the weekly volume of S&P 100 put options. Big call volume appears at market tops and big put volume at bottoms. But call/put ratios of the indices like OEX and SPX are distorted and clouded by arbitrage and hedging and do therefore not always reflect true investor sentiment. Page 23 The E-Book of Technical Market Indicators WallStreetCourier.com www.wallstreetcouriercom CALL/PUT RATIO OEX 4-WEEK MOVING AVERAGE 1,15 SELL 0,95 0,75 BUY 0,55 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07

98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,35 Call/Put Ratio This indicator is calculated by dividing the daily or weekly volume of call options by the daily or weekly volume of put options. Big call volume appears at market tops and big put volume at bottoms. Only CBOE equity options or all CBOE options should be used for this indicator. Call/put ratios of the indices like OEX and SPX are distorted and clouded by arbitrage and hedging and do therefore not always reflect true investor sentiment. The chart below shows you the weekly call/put ratio on a 4-week moving average to smooth out the swings. WallStreetCourier.com 2,50 CALL/PUT RATIO ALL CBOE OPTIONS 4-WEEK MOVING AVERAGE 2,25 SELL 2,00 1,75 1,50 1,25 BUY 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12

97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 1,00 Page 24 The E-Book of Technical Market Indicators WallStreetCourier.com 3,00 www.wallstreetcouriercom CALL/PUT RATIO EQUITY OPTIONS 4-WEEK MOVING AVERAGE SELL 2,50 2,00 BUY 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 1,50 Global Futures Put/Volume Ratio The Global Futures Put/Volume Ratio is a market sentiment indicator. It is calculated by dividing the volume of CBOE equity put options by the NYSE volume on a weekly basis and is interpreted in a contrary fashion. High readings

signify extreme pessimism and fear, sometimes outright panic and indicate very often bottoms. Low readings of this indicator result from the anticipation of higher prices ahead and are therefore considered bearish. It is in our opinion more affirmative than the widely used put/call ratio which has gained widespread notice. WallStreetCourier.com 45 THE GLOBAL FUTURES PUT/VOLUME RATIO 40 35 30 25 20 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 15 Page 25 The E-Book of Technical Market Indicators www.wallstreetcouriercom Smart Money Flow Index The Smart Money Flow Index has long been one of the best kept secrets of Wall Street. Everybody knows the importance of a closing price and other last hour

indicators like the Closing Tick, which we publish daily for free on our portal. The Smart Money Flow Index is therefore calculated by taking the action of the Dow in two time periods: the first 30 minutes and the close. The first 30 minutes represent emotional buying, driven by greed and fear of the crowd based on good and bad news. There is also a lot of buying on market orders and short covering at the opening. Smart money waits until the end and they very often test the market before by shorting heavily just to see how the market reacts. Then they move in the big way. These heavy hitters also have the best possible information available to them and they do have the edge on all the other market participants. The Smart Money Indicator is calculated like the Advance-Decline Line. You can easily do it yourself if you dont want to pay our subscription rate of $1.50 weekly (based on a 6-month membership). Just start at any given day, subtract the price of the Dow at 10 AM from the

previous days close and add todays closing price. The result is plotted on a chart, together with the closing price of the Dow only. Whenever the Dow makes a high which is not confirmed by the SMI there is trouble ahead (chart below). Watch the divergence around June 1998, February 2000 and September 2000. Watching this indicator is like being on a plane and see the pilots jumping off with parachutes. This indicator is suitable only for investors with a longer time horizon. Such investors should buy blue chips when the indicator gives a buy signal, and sell and sell short on a divergence. WallStreetCourier.com 12000 SMART MONEY FLOW INDEX DOW JONES CLOSE 10000 Bearish Divergence Bearish Divergence 8000 SMART MONEY FLOW INDEX 98-01-02 98-01-30 98-02-27 98-03-27 98-04-24 98-05-22 98-06-19 98-07-17 98-08-14 98-09-11 98-10-09 98-11-06 98-12-04 99-01-01 99-01-29 99-02-26 99-03-26 99-04-23 99-05-21 99-06-18 99-07-16 99-08-13 99-09-10 99-10-08 99-11-05 99-12-03 99-12-31 00-01-28

00-02-25 00-03-24 00-04-21 00-05-19 00-06-16 00-07-14 00-08-11 00-09-08 00-10-06 00-11-03 00-12-01 00-12-29 01-01-26 01-02-23 01-03-23 01-04-20 01-05-18 01-06-15 6000 Bullish Divergence Page 26 The E-Book of Technical Market Indicators www.wallstreetcouriercom Global Futures Timing Indicator This indicator, like the Global Futures Bottom Indicator, is unknown until now to the investment community and is not available anywhere else. To our knowledge there is no previous mentioning of this indicator in any financial publication. It was also developed by R. Koch of Wall Street Courier The Global Futures Timing Indicator gives buy signals more often and is an excellent supplement to the Global Futures Bottom Indicator, especially when this one has readings between 6 and 25. It prevents investors from buying at the wrong time and it works also very well for option speculators and position traders because of its expert timing. Both indicators together should improve your trading

substantially and will build you an estate in the years ahead. Just start buying good value stocks whenever the readings of the Global Futures Timing Indicator shrink to single digit numbers. This takes of course a lot of guts because the opinions of the widely quoted gurus are usually contrary at this time. Minus readings indicate an intermediate bottom. WallStreetCourier.com THE GLOBAL FUTURES TIMING INDICATOR 80,00 70,00 60,00 50,00 40,00 30,00 20,00 10,00 START BUYING 0,00 -10,00 INTERMEDIATE BOTTOM 96-01-12 96-02-23 96-04-05 96-05-17 96-06-28 96-08-09 96-09-20 96-11-01 96-12-13 97-01-24 97-03-07 97-04-18 97-05-30 97-07-11 97-08-22 97-10-03 97-11-14 97-12-26 98-02-06 98-03-20 98-05-01 98-06-12 98-07-24 98-09-04 98-10-16 98-11-27 99-01-08 99-02-19 99-04-02 99-05-14 99-06-25 99-08-06 99-09-17 99-10-29 99-12-10 00-01-21 00-03-03 00-04-14 00-05-26 00-07-07 00-08-18 00-09-29 00-11-10 00-12-22 01-02-02 01-03-16 01-04-27 01-06-08 -20,00 Page 27 The E-Book of Technical Market

Indicators www.wallstreetcouriercom Global Futures Market Timer Index The Global Futures Market Timer Index is a proprietary indicator of Global Futures and not available anywhere else. It was unknown until now to the investment community and to our knowledge there is no previous mentioning of this indicator in any financial publication. The Global Futures Market Timer Index gives buy signals when it has readings below 1,00 and sell signals above 1,20. Start buying good value stocks whenever the readings of this index fall below 1,00. This takes of course a lot of guts because the opinions of the widely quoted gurus are usually contrary at this time. Place close stops when readings go above 1,20. 1,40 THE GLOBAL FUTURES MARKET TIMER INDEX SELL 1,20 1,00 BUY 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10

99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,80 Page 28 The E-Book of Technical Market Indicators www.wallstreetcouriercom Global Futures Fear Indicator The Global Futures Fear Indicator is a proprietary indicator of Global Futures and not available anywhere else. It was unknown until now to the investment community and to our knowledge there is no previous mentioning of this indicator in any financial publication. The Global Futures Indicator gives buy signals when it has readings between 0 and 10. Start buying good value stocks whenever the readings of this index fall below 0. This takes of course a lot of guts because the opinions of the widely quoted gurus are usually contrary at this time. Unfortunately this indicator does not tell you when to sell Set yourself a limit if you trade options or use trailing stop-loss orders if you are a long-term investor. WallStreetCourier.com 40,00 THE GLOBAL FUTURES FEAR

INDICATOR 35,00 30,00 25,00 20,00 15,00 10,00 5,00 BUY 0,00 PANIC 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 -5,00 Wall Street Courier Index The Wall Street Courier Index gives you a longer term picture of the stock market. Readings below 40 indicate a heavily oversold market which is ripe for an upturn. Readings above 50 flash a warning signal and you should use trailing stop-loss orders to protect your profits. This index serves longer-term oriented position traders very well It is also a contrarian indicator and once again we would like to remind you that charts usually look most bullish at tops and most bearish at bottoms.This indicator has an excellent track record as you can see. Page 29 The

E-Book of Technical Market Indicators WallStreetCourier.com 0,60 0,55 www.wallstreetcouriercom THE WALL STREET COURIER INDEX SELL 0,50 0,45 BUY 0,40 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,35 Global Futures Trading Index The Global Futures Trading Index is a proprietary indicator of Global Futures. It shows bottoms and tops in trends and should be used together with the Global Futures Trend Index for exact timing. If the market is in a clear uptrend according to our trend index, go long if the Global Futures Trading Index shows a reading below 35. The reverse is true in a downtrend. Go short or buy puts if the index gives readings of 55 or above when the Global Futures Trend Index is below 20.

Cover all your shorts if the index trades below 35 in a bearish trend. Please bear in mind that this index is a contrary indicator and therefore when these signals are given, they will be most likely contrary to most of the news of the moment and the opinions of the well known and most widely quoted gurus of Wall Street. Page 30 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,65 0,35 1,40 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18

The E-Book of Technical Market Indicators WallStreetCourier.com 0,75 WallStreetCourier.com www.wallstreetcouriercom THE GLOBAL FUTURES TRADING INDEX 0,70 0,60 SELL 0,55 0,50 0,45 0,40 BUY 0,30 0,25 Global Futures Speculation Index This indicator is calculated by simply adding the number of the weekly CBOE equity calls and puts together and dividing the result by the weekly NYSE volume. THE GLOBAL FUTURES SPECULATION INDEX 1,20 1,00 0,80 0,60 Page 31 The E-Book of Technical Market Indicators www.wallstreetcouriercom Program Trading Program trading is the purchase or sale of at least 15 different stocks with a total value of $1 million or more. Some of Wall Streets biggest names are the players in this game and they are among others: Merrill Lynch, Bear Stearns, First Boston, Morgan Stanley, Deutsche Bank Sec, and Nomura. There is a bullish tendency in the market whenever the Buy/Sell Ratio of program traders rises above 1,20 on a 4-week moving average.

When program trading becomes excessive and accounts for more than about 25% of total volume on a 4-week moving average, the market became vulnerable in the past. WallStreetCourier.com NYSE PROGRAM TRADING - BUY/SELL RATIO 1,80 4 - WEEK MOVING AVERAGE 1,60 1,40 1,20 1,00 0,80 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,60 WallStreetCourier.com 32 PROGRAM TRADING IN % OF NYSE VOLUME 4- WEEK MOVING AVERAGE 26 20 14 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06

00-12-01 01-01-26 01-03-23 01-05-18 8 Page 32 The E-Book of Technical Market Indicators www.wallstreetcouriercom Global Futures Time Premium Index The Global Futures Time Premium Index is a sentiment indicator. The spread between the S&P 500 cash index and the S&P futures contracts (premium) shows high readings near market tops and low readings near market bottoms. The bold red lines on the chart below show you the futures contracts with the highest and lowest premiums of the last years on a 5-day moving average for comparison (6 months until expiration). If the index (premium of the nearby S&P 500 futures contract on a 5-day moving average) moves close to the upper line or above, bullish sentiment is prevailing which is a bearish indicator. The reverse is true if the index moves near or below the lower line; it shows extreme pessimism by futures traders and indicates bottoms. WallStreetCourier.com GLOBAL FUTURES TIME PREMIUM INDEX 50 40 30 20 10 SP U1 114

112 110 108 106 104 102 100 98 96 94 92 90 88 86 84 82 80 78 76 74 72 70 68 66 64 62 60 58 56 54 52 50 48 46 44 42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0 Calendar Spread A good sentiment indicator in the past has been the Calendar Spread . This is the premium spread of the two nearby S&P 500 futures contracts (for instance the difference between the June SP and September SP contracts on a 5- day moving average). It shows if futures traders are extremely bearish or bullish. When speculation peaked in June 2000 and everybody was bullish, this indicator was as high as 23! Page 33 The E-Book of Technical Market Indicators WallStreetCourier.com www.wallstreetcouriercom DAILY CALENDAR SPREAD 5- DAY MOVING AVERAGE 23 19 15 11 01-07-18 01-04-25 01-05-23 01-06-20 01-01-31 01-02-28 01-03-28 00-11-08 00-12-06 01-01-03 00-07-19 00-08-16 00-09-13 00-10-11 00-04-26 00-05-24 00-06-21 00-02-02 00-03-01 00-03-29 99-11-10 99-12-08 00-01-05 99-08-18 99-09-15

99-10-13 99-04-28 99-05-26 99-06-23 99-07-21 99-02-03 99-03-03 99-03-31 99-01-06 7 Odd-Lot Differential Index This index is simply calculated by subtracting the daily or weekly odd-lot sales from the daily or weekly odd-lot purchases. A 10-period moving average is applied to smooth out the swings. High readings appear near market tops and minus readings near bottoms Introduced by Wall Street Courier, the Odd -Lot Differential Index indicates the market sentiment of small investors who purchase less than 100 shares of a stock. These market participants are usually wrong about the direction of the market and this indicator is therefore considered to be a contrary opinion sentiment indicator. WallStreetCourier.com 3000 ODD-LOT DIFFERENTIAL INDEX DAILY 10-DAY MOVING AVERAGE 2000 1000 0 02.012001 05.012001 10.012001 16.012001 19.012001 24.012001 29.012001 01.022001 06.022001 09.022001 14.022001 20.022001 23.022001 28.022001 05.032001 08.032001 13.032001 16.032001 21.032001

26.032001 29.032001 03.042001 06.042001 11.042001 17.042001 20.042001 25.042001 30.042001 03.052001 08.052001 11.052001 16.052001 21.052001 24.052001 30.052001 04.062001 07.062001 12.062001 15.062001 20.062001 25.062001 28.062001 -1000 Page 34 The E-Book of Technical Market Indicators www.wallstreetcouriercom Short Sales Statistics The NYSE Short Interest Ratio Every short seller anticipates a declining stock market. Investors sell short stock when they anticipate its price going lower. Sooner or later they must cover their short sales by buying back the stock. A profit is made if the stock is bought back at a lower price than when it was sold short. Indicators based on short selling statistics are an important part of technical analysis. Daily and weekly short sales are reported by the NYSE and published by financial sites all over the Internet. Market technicians watch the short selling activities of all the market participants very carefully. They distinguish between the

odd-lots and the general public, the so called crowd, and the well informed NYSE members, specialists, floor traders and corporate insiders. When a large amount of short selling activity is occurring, market participants obviously expect prices to head lower. The NYSE Short Interest Ratio is therefore a long-term contrary opinion sentiment indicator. It is calculated by dividing the monthly short interest figure released by the New York Stock Exchange by the average volume of trading per day. These numbers get sometimes distorted by arbitrage transactions, but the short interest ratio is nevertheless a good indicator of optimism or pessimism in the market. Short sellers are potential buyers sooner or later and represent a lot of buying power when they have to scramble for cover in a sudden market turn. Contrary indicators require at least some degree of pessimism in order to function and therefore you should watch this ratio very carefully. WallStreetCourier.com THE NYSE SHORT

INTEREST RATIO 8 6 4 May 01 Jan01 Mar 01 Nov.00 Jul.00 Sep.00 May00 Jan00 Mar00 Nov.99 Jul.99 Sep.99 Mar99 May99 Jan99 Nov.98 Jul.98 Sep.98 Mar98 May98 Jan98 Nov.97 Jul.97 Sep.97 May97 Jan97 Mar97 Nov.96 Jul.96 Sep.96 May96 Jan96 Mar96 2 Page 35 The E-Book of Technical Market Indicators www.wallstreetcouriercom Odd-Lot Short Sales Ratio The Odd-Lot Short Sales Ratio is calculated by dividing odd-lot short sales by the total number of short sales. For stocks, the generally accepted unit of trading is 100 shares (round lot). The Odd -Lot Short Ratio indicates the market sentiment of small investors who purchase less than 100 shares of a stock (odd-lot). These market participants are usually wrong about the direction of the market and this indicator is therefore considered to be a contrary opinion sentiment indicator. WallStreetCourier.com 0,00045 ODD-LOT SHORT SALES RATIO 0,0004 BUY 0,00035 0,0003 0,00025 0,0002 SELL 96-01-05 96-03-01

96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 01-07-13 0,00015 Floor Traders Short Sales Ratio The Floor Traders Short Sales Ratio is computed by dividing the total floor traders short sales by total short sales. A moving average should be applied to smooth out the swings. Floor traders are normally right about the trend of the market and if they are shorting heavily the market is usually ripe for a correction. On the other hand, if they are doing relatively little shorting it is most likely that the market has hit bottom, especially if public- and odd-lot short sales increase at the same time. Page 36 The E-Book of Technical Market Indicators WallStreetCourier.com www.wallstreetcouriercom FLOOR TRADERS SHORT SALES RATIO

0,00165 0,00145 0,00125 0,00105 0,00085 0,00065 0,00045 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,00025 Specialist Short Sales Ratio Specialists are responsible for balancing incoming buy and sell orders to maintain orderly markets in the stocks in which they specialize. The Specialist Short Sales Ratio is computed by dividing the total specialist short sales by total short sales. A moving average should be applied to smooth out the swings. Specialists are normally right about the trend of the market and if they are shorting heavily the market is usually ripe for a correction. On the other hand, if they are doing relatively little shorting it is most likely that the market has hit bottom, especially if

public- and odd-lot short sales increase at the same time. WallStreetCourier.com SPECIALISTS SHORT SALES RATIO 0,60 0,55 0,50 0,45 0,40 0,35 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,30 Page 37 The E-Book of Technical Market Indicators www.wallstreetcouriercom NYSE Member Short Sales Ratio The NYSE Members Report is compiled by the SEC and issued about two weeks after the applicable date. This indicator is a useful tool to determine what the experts are doing. The NYSE Member Short Sales Ratio is computed by dividing the total member short sales by total short sales. A moving average should be applied to smooth out the swings. Members of the NYSE are professionals and normally right about the

trend of the market. If they are shorting heavily the market is usually ripe for a correction On the other hand, if they are doing relatively little shorting it is most likely that the market has hit bottom, especially if public- and odd-lot short sales increase at the same time. WallStreetCourier.com NYSE MEMBER SHORT SALES RATIO 0,65 0,6 0,55 0,5 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,45 Public Short Sales Ratio The NYSE Members Report is compiled by the SEC and issued about two weeks after the applicable date. This indicator is a useful tool to determine what the public or the so called crowd is doing. The Public Short Sales Ratio is computed by dividing the total public short sales by total

short sales. A moving average should be applied to smooth out the swings. The public is usually wrong about the trend of the market If they are shorting heavily the market is usually ripe for an upturn. On the other hand, if they are doing relatively little shorting it is most likely that the market is near a correction, especially if specialists short sales increase at the same time. Page 38 The E-Book of Technical Market Indicators www.wallstreetcouriercom PUBLIC SHORT SALES RATIO 0,55 0,5 0,45 0,4 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,35 Odd-Lot Balance Index This index is calculated by dividing daily or weekly odd-lot purchases by odd-lot sales. For stocks, the generally accepted unit

of trading is 100 shares (round lot) The Odd Lot Balance Index indicates the market sentiment of small investors who purchase less than 100 shares of a stock (odd-lot). These market participants are usually wrong about the direction of the market and this indicator is therefore considered to be a contrary opinion sentiment indicator. WallStreetCourier.com 1,80 ODD-LOT BALANCE INDEX DAILY 10-DAY MOVING AVERAGE 1,60 SELL 1,40 1,20 1,00 BUY 31.102000 07.112000 14.112000 21.112000 29.112000 06.122000 13.122000 20.122000 28.122000 05.012001 12.012001 22.012001 29.012001 05.022001 12.022001 20.022001 27.022001 06.032001 13.032001 20.032001 27.032001 03.042001 10.042001 18.042001 25.042001 02.052001 09.052001 16.052001 23.052001 31.052001 07.062001 14.062001 21.062001 28.062001 06.072001 13.072001 20.072001 27.072001 03.082001 10.082001 17.082001 0,80 Page 39 The E-Book of Technical Market Indicators www.wallstreetcouriercom Odd-Lot/Floor Trader Short Sales Ratio This index is

calculated by dividing the weekly odd-lot short sales by the weekly short sales by floor traders for better comparison. Introduced by Wall Street Courier, the Odd -Lot Short/Floor Trader Short Ratio indicates the market sentiment of small investors who purchase less than 100 shares of a stock (odd-lot). Unlike the more sophisticated floor traders, the odd-lotters are usually wrong about the direction of the market and this indicator is therefore considered to be a contrary opinion sentiment indicator. WallStreetCourier.com 0,95 0,90 ODD-LOT /FLOOR TRADERS SHORT SALES RATIO BUY 0,85 0,80 0,75 0,70 0,65 SELL 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,60 Global Futures Odd-Lot/Specialist Short Sales

Ratio This index is calculated by dividing the weekly odd-lot short sales by the weekly specialists short sales for better comparison. A 4-week moving average is applied to smooth out the swings. Unlike the well informed specialists, the odd-lotters are usually wrong about the direction of the market and this indicator is therefore considered to be a contrary opinion sentiment indicator. High readings indicate heavy shorting by odd-lot investors and therefore bottoms, extremely low readings tops. Page 40 The E-Book of Technical Market Indicators www.wallstreetcouriercom WallStreetCourier.com ODD-LOT/SPECIALISTS SHORT SALES RATIO 0,0145 0,0115 BULLISH 0,0085 0,0055 BEARISH 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26

01-03-23 01-05-18 0,0025 Global Futures Public/Member Short Sales Ratio This index is calculated by dividing the weekly public short sales by the weekly member short sales for better comparison. A 4-week moving average is applied to smooth out the swings. Members of the NYSE are professionals and normally right about the trend of the market. If they are doing relatively little shorting it is most likely that the market has hit bottom, especially if public short sales increase at the same time. High readings indicate heavy shorting by the public (the so called crowd) and therefore bottoms, low readings indicate tops. WallStreetCourier.com PUBLIC/MEMBER SHORT SALES RATIO 1,20 1,00 BULLISH 0,80 BEARISH 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11

00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,60 Page 41 The E-Book of Technical Market Indicators www.wallstreetcouriercom Public/Specialists Short Sales Ratio The Specialist/Public Short Sales Ratio is a market sentiment indicator. It is calculated by dividing the volume of the weekly short sales made by the public (non members) by the weekly short sales made by stock exchange specialists (members). A 4week moving average is applied to smooth out the swings The public is usually wrong about the trend of the market. If they are shorting heavily the market is usually ripe for an upturn. On the other hand, if they are doing relatively little shorting it is most likely that the market is near a correction, especially if specialists short sales increase at the same time. High readings indicate heavy shorting by the public (the so called crowd) and therefore bottoms, low readings indicate tops. WallStreetCourier.com PUBLIC/SPECIALISTS SHORT SALES RATIO 1,90 1,50 BULLISH

1,10 BEARISH 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,70 Page 42 The E-Book of Technical Market Indicators www.wallstreetcouriercom Global Futures NYSE Member Trading Indicator The NYSE Members Report is compiled by the SEC and issued about two weeks after the applicable date. This indicator is a useful tool to determine what the experts are doing. If specialists, floor traders and other members of the New York Stock Exchange are shorting heavily the market is usually ripe for a correction. On the other hand, if they are doing relatively little shorting it is most likely that the market has hit bottom, especially if public- and odd-lot short sales increase at the same time. Even if data are not

quite up-to date, they are nevertheless an excellent indicator of the prevailing sentiment in the market. The formula of the Global Futures NYSE Member Trading Indicator is proprietary and we also use special moving averages to push the tops and bottoms forward an extra two weeks or so. WallStreetCourier.com 0,07 THE NYSE MEMBER TRADING INDICATOR 0,05 BEARISH 0,03 0,01 -0,01 -0,03 -0,05 -0,07 BULLISH 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 -0,09 Page 43 The E-Book of Technical Market Indicators www.wallstreetcouriercom Sentiment Indicators Investor Sentiment The principles of Contrarian Investing hold that when the vast majority of people agree on anything, they are generally wrong. Otherwise

no market would function because there is simply no minority with money enough to make a majority rich. A true contrarian, therefore, will first try to determine what the majority are doing and then will act in the opposite direction. Market Vane, AAII and Investors Intelligence are all contrary opinion indicators. A unique feature of Market Vanes Bullish Consensus numbers is a weighting formula applied to the various market letters. More weight is given to letters with a larger following and less weight to those with fewer readers. Each week a poll of market letters is taken to determine the degree of bullishness or bearishness among futures professionals. The theory is that when a significant number of participants are bullish, they are already positioned on the long side and there is little potential buying power left. If most participants are bearish, selling pressure has reached an extreme and prices will reverse to the upside. WallStreetCourier.com 80 BULL/BEAR RATIO MARKET

VANE 10-WEEK MOVING AVERAGE SELL 60 40 BUY 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 01-07-13 20 Thanks to the Internet, the American Association of Individual Investors (AAII) now polls its 170,000 members daily. Respondents indicate how they feel about the Page 44 The E-Book of Technical Market Indicators www.wallstreetcouriercom markets performance in the next six months. The chart below shows the number of bulls divided by the number of bears. A 10-week moving average is applied to smooth out the swings. High readings appear near market tops and low readings near bottoms WallStreetCourier.com 4,10 BULL/BEAR RATIO AAII 10-WEEK MOVING AVERAGE 3,60 SELL 3,10 2,60 2,10 1,60 BUY 1,10

96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,60 Since 1963, Investors Intelligence has been compiling data on the opinions of publishers of market letters. They conduct a weekly poll of about 130 market newsletter writers and calculate the percentage who are bullish, bearish or expecting a short-term correction. The resulting index shows that the advisory services follow the trend of equity prices by becoming most bullish near market tops and most bearish around market bottoms. WallStreetCourier.com BULL/BEAR RATIO INVESTORS 2,40 10-WEEK MOVING AVERAGE INTELLIGENCE SELL 2,00 1,60 1,20 BUY 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12

97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 0,80 Page 45 The E-Book of Technical Market Indicators www.wallstreetcouriercom Commitments of Traders Report The Commodity Futures Trading Commission (CFTC) provides inside information about purchases and sales of futures contracts. The largest players in each market are required to disclose their positions to the CFTC on a daily basis and this report is released weekly on Friday afternoon (the reporting requirement varies by commodity). These traders are separated into Commercial Hedgers and Large Speculators. The positions of Small Traders are calculated by subtracting the total of contracts held by the reporting groups from all the contracts outstanding (Small Traders are not required to report their positions). Commercial Hedgers hold a significant

informational edge over other traders as far as fundamental supply-and-demand statistics are concerned. They tend to be early, but they are usually right on the long run, quite contrary to the small traders. Extreme divergences in long and short positions of Small Traders, Large Speculators and Commercial Hedgers have proven to be reliable indicators of important trend changes. In such cases it is not advisable to bet against the Commercial Hedgers All other patterns are meaningless. The following charts show you the positions of these three groups of market participants. A 10-week moving average is applied to smooth out the swings. Three different charts are available for each commodity: • Short positions of all market participants (Large Speculators, Commercial Hedgers, Small Traders) on a percentage basis. • Short positions of Small Traders only. Significant changes in those numbers give you an insight about prevailing sentiment. • The Long/Short Ratio of Small Traders.

This chart is computed by dividing the long and short positions of Small Traders. High readings indicate heavy buying by Small Traders which is bearish. Page 46 96-01-02 96-02-27 96-04-23 96-06-18 96-08-13 96-10-08 96-12-03 97-01-28 97-03-25 97-05-20 97-07-15 97-09-09 97-11-04 97-12-30 98-02-24 98-04-21 98-06-16 98-08-11 98-10-06 98-12-01 99-01-26 99-03-23 99-05-18 99-07-13 99-09-07 99-11-02 99-12-28 00-02-22 00-04-18 00-06-13 00-08-08 00-10-03 00-11-28 01-01-23 01-03-20 01-05-15 01-07-10 0,35 0,20 96-01-02 96-02-27 96-04-23 96-06-18 96-08-13 96-10-08 96-12-03 97-01-28 97-03-25 97-05-20 97-07-15 97-09-09 97-11-04 97-12-30 98-02-24 98-04-21 98-06-16 98-08-11 98-10-06 98-12-01 99-01-26 99-03-23 99-05-18 99-07-13 99-09-07 99-11-02 99-12-28 00-02-22 00-04-18 00-06-13 00-08-08 00-10-03 00-11-28 01-01-23 01-03-20 01-05-15 01-07-10 0,40 2,00 01-07-03 01-05-08 01-03-13 01-01-16 00-11-21 00-09-26 00-08-01 00-06-06 The E-Book of Technical Market Indicators 00-04-11 00-02-15

99-12-21 99-10-26 99-08-31 99-07-06 99-05-11 99-03-16 99-01-19 98-11-24 98-09-29 0,30 98-08-04 98-06-09 WallStreetCourier.com 98-04-14 0,70 98-02-17 97-12-23 97-10-28 97-09-02 97-07-08 97-05-13 97-03-18 97-01-21 96-11-26 www.wallstreetcouriercom SOYBEANS - SHORT POSITIONS 0,60 10-WEEK MOVING AVERAGE 0,50 COMMERCIAL HEDGER 0,40 SMALL TRADER 0,20 0,10 0,00 LARGE SPECULATOR WallStreetCourier.com SOYBEANS - SMALL TRADERS SHORT POSITION BUY 0,30 0,25 SELL 0,15 WallStreetCourier.com SOYBEANS - SMALL TRADERS LONG/SHORT RATIO 1,80 1,60 SELL 1,40 1,20 1,00 BUY 0,80 0,60 Page 47 96-01-05 96-03-01 96-04-26 96-06-21 96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 96-01-05 96-03-01 96-04-26 96-06-21

96-08-16 96-10-11 96-12-06 97-01-31 97-03-28 97-05-23 97-07-18 97-09-12 97-11-07 98-01-02 98-02-27 98-04-24 98-06-19 98-08-14 98-10-09 98-12-04 99-01-29 99-03-26 99-05-21 99-07-16 99-09-10 99-11-05 99-12-31 00-02-25 00-04-21 00-06-16 00-08-11 00-10-06 00-12-01 01-01-26 01-03-23 01-05-18 The E-Book of Technical Market Indicators WallStreetCourier.com 12000 WallStreetCourier.com 1600 www.wallstreetcouriercom Appendix The enclosed charts of the indices have exactly the same time span as the charts in our e-book. You will therefore easily be able you to verify the reliability of each indicator Dow Jones Weekly Close DOW JONES WEEKLY CLOSE 11000 10000 9000 8000 7000 6000 5000 S&P 500 Weekly Close S & P 500 WEEKLY CLOSE 1400 1200 1000 800 600 Page 48 The E-Book of Technical Market Indicators www.wallstreetcouriercom Risk Statement HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS

BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN

ADVERSELY AFFECT ACTUAL TRADING RESULTS.” TRADING IN COMMODITY FUTURES OR OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS. THIS RISK STATEMENT APPLIES TO ANY ILLUSTRATION OF PROFIT AND LOSS CONTAINED WITHIN THIS PUBLICATION. IT SHOULD ALSO BE NOTED THAT STOP LOSS ORDERS DO NOT NECESSARILY LIMIT LOSSES OR LOCK IN PROFITS. DEPENDING UPON MARKET CONDITIONS, STOP LOSS ORDERS MAY BE EXECUTED AT PRICES SUBSTANTIALLY BELOW OR ABOVE THE SPECIFIED STOP PRICE. Page 49