Category: Stock Indices
Intrinsic Value Models
To determine intrinsic value you can use one of three intrinsic value models: Build – your – own model: Using Excel, the worksheet model is fairly easy to construct; formulas will be shown along with sample results for both indefinite continuing value and the acquisition assumption. Prepackaged Web – based analyzer: At this writing, the [...]
Reading trade Volume as a sentiment indicator
Trading volume is a direct, real – time sentiment indicator. As a general rule, high trading volume is a sign that the current trend is likely to continue. Still, good volume analysis takes other market indicators into account. When analyzing volume, be sure that you Figure 4-1, which shows the S&P 500 e – mini [...]
Combining open interest and Volume
Combining open interest and Volume You can combine open interest and volume to predict a trend change. Generally, volume and open interest need to be heading in the same direction as the market. When the market starts rising, for example, you want to see volume and open interest expanding. A rising market with shrinking volume [...]
