SectorID.com
Market Behavior Analysis
Our Market Behavior Analysis models assist with tactical investing and strategic asset allocation.  This unique measure of market behavior may offer superior guidance to investment positioning, sector rotation and market valuation than traditional market analysis.

Market Behavior Analysis

What is Market Behavior Analysis?
  • Our proprietary models which uniquely measure the results of market behavior.  The models provide guidance to global markets both tactically and strategically.

Why are the Market Behavior Analysis models used?

  • To determine the stage of a trend to provide guidance to the markets.  By determining the stage of a trend the models may provide signals ahead of price developments.

How are the models used?

  • In order to determine the stage of a trend our Market Behavior Analysis models measure our indicators and provide information as to the current stage of market behavior.  The models are designed to break down the markets into 5 stages. 
  • The stages are 1) Long, 2) Richly Priced, 3) Correction, 4) Short and 5) Deeply Sold.

The graphic below shows a hypothetical rotation of the cycles:




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Goal:

  • The goal of our Market Behavior Analysis models is to discover trend.  By discovering trend you can gauge market valuation which leads to investing opportunities.  Understanding when a market is in a Deeply Sold condition which may give way to an Upward trend may assist with your investments.  Also understanding when a market is Richly Priced and may give way to a Correction or Short condition should enhance investment performance.

Construction:

  • The models are designed to objectively identify potential repeatable patterns in the markets through the discovery of information on market behavior.  This is done by creating an indicator that oscillates the results of market behavior and developing a system of analysis.  The oscillation is done on a multilayered basis looking to represent the qualities of both a centered and a banded oscillator.  The result is an oscillating indicator that measures trend.  This is referred to as our Behavior Indicator.

Benefits:

As compared to Flow Analysis, Fundamental Analysis and Technical Analysis:

  • Our Market Behavior Analysis models are more objective
  • Provide distinction and distinguishable information as compared to Flow Analysis
  • Are not subject to revisions and subjective analysis as compared to Fundamental Analysis
  • May provide fewer false signals than Technical Analysis

As compared to Flow Analysis, Fundamental Analysis and Technical Analysis:

  • Our Market Behavior Analysis models offer trend identification
  • Provide flow direction such as Flow Analysis
  • Offer guidance to market valuation such as Fundamental Analysis
  • Discover patterns that may be repeatable such as Technical Analysis


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Presentation:

 
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Market Application


Identifying Market Stages:


  • The models are designed to objectively identify potential patterns in the markets.  This is done by creating an indicator that oscillates market behavior.  Because it is an oscillator the Behavior Indicator will generally oscillate between 120 and (120).  A reading of 60 or (60) is generally considered a one deviation move and a reading of 120 or (120) is considered a two deviation move.

The chart below is an example of the Behavior Indicator.

Sample Indicator Aggregate:

  • The chart below shows a sample aggregate for our Indicators.  As you can see Zero is the mean and the divergence is normally distributed between 120 and (120).  Opportunities and extreme price conditions arise faster when analyzing the market with our Market Behavior Analysis models than when using traditional forms of analysis.

Bell Curve:

  • The chart below shows a sample deviation for our Indicators.  This measurement of market behavior produces less deviation of results than fundamental, flow or technical analysis.  Meaning what appears to be a one standard deviation event in the markets to some may measure as a two standard deviation event with Market Behavior Analysis.  This greatly increases opportunities for entry and confidence levels for probability and direction. 

Contact info:
617-714-3797
info@SectorID.com

Data and information are provided for informational purposes only, and are not intended for trading purposes. You agree to make your own independent investigation the basis for any business judgments and decisions. Neither SectorID nor any of its data or content providers shall be liable for any errors or delays in the content, or for any action taken in reliance thereon. No offer on our part with respect to the sale or purchase of any securities is intended or implied, and nothing contained herein is to be construed as a recommendation to buy or sell any securities. It is possible that at this date or some subsequent date the officers, directors and/or shareholders of SectorID and its affiliates own securities, or buy or sell securities mentioned in this publication or those not so mentioned.

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