Greed and Fear - Daily trading signals based on mathematics and software, no opinion, no emotion, no ego.

As you can see from the chart, the S&P 500 has been in a huge bull run since the start of this year. The indicator has been a very useful tool to keep me on the right side of the market. The two pull backs in the S&P 500 were nicely anticipated by the indicator, but the recovery was not unfortunately. This makes an almost mirrored image around those pullbacks. So the temporary out performance was given back once the S&P had recovered the losses.

The conclusion for the year 2013 could be that the most difficult thing was not to fall for the ever so tempting short position. It's really hard not to, with all the bad news that was still flooding the media. And once the tone changed to a more optimistic one, it's psychologically difficult to join the bullish party so late while at the same time admitting being wrong in the first place. 

The mechanical nature of the Greed and Fear indicator does not get influenced by any such sentiments and overall made wise decisions and favored mostly the long position. This is the best way to keep up with a strong bull market that everybody thinks is going to crack, but in reality is just steaming on to higher levels almost every month.

The total result in index points for 2013 is 469, check the link below for a list of daily results. If the indicator was traded with only one S&P E-Mini futures (ES) contract, the result in US Dollars would be $23.450,- . Of course, we are discarding costs of trading, so this is just a rough estimate. (For a more in depth explanation about how the results are calculated, there's more: How do the daily signals add up?)

 

Click here for daily details and chart.