Thursday, March 11, 2010

GLD -- Motility Index

In the newsletter I published this morning I introduced a new indicator, which I call the 'Motility Index' and showed a chart of the S&P 500's Motility Index. But Motility isn't just for stock indexes, it can be used for any market at all. As proof here is a chart of the Motility Index for GLD, the gold ETF, going back to 2005:



And here is a close-up of the indicator over the past 100 days:



The purpose of the indicator is to help in timing options trades. I am not sure how original the formula is, but I haven't yet come across anything very similar. If anyone wants to take a look at it, I can send you the formula to review. Just email me.