We developed 2 barometers which allow you to instantly capture the #situation and #sentiment on the #Wall #Street on daily basis. CD MICRO shows you the current positioning and expectations of "#smart #money" and CD MACRO aggregates the most relevant* #economic #indicators and their #surprise #potential.
Framework
The logic behind the visualization of our 2 barometers is the classic speedometer. As faster as you drive, as more risk is involved and as more attentive you have to be in "driving" your portfolio through the markets. We've added statistically specified areas which indicate bullish (0-40%), uncertain (>40-70%) and bearish (>70-100%) market environments. You will find the name and the absolute value within each barometer.
Direction
The #direction of #change is as significant as the absolute value for #assessing and #forecasting the #market #conditions. To instantly grasp and estimate direction you will find a simple #historical #graph and three additional columns in the raw data section. The graph is written on daily basis from left to right (most recent value).
Raw Data
In order to allow you to understand what you are reading, we want to be as #transparent #as #possible. To ensure transparency we provide in this section all components of CD Barometers and their actual values.
In order to be able to #understand the #past and derive an opinion for the #future you will also find the previous value and a #simple #moving #average (#sma) for the past week and month. The calculation of ranges and percentiles is performed on daily close prices.
Currentness and Quality
Our statements concerning quality also applies to us:
we are as good as our data and algorithms
We try the best to make sure that we have the current and correct data. The variables of CD MICRO are usually updated every 20 minutes. The variables of CD MACRO are based on data that is released in intervals from 20 minutes to daily and a monthly basis. The most recent update is indicated at the top right corner.
The overall data handling and calculation has a defined cycle of 1 minute. We've selected the best providers (Google Cloud and WIX) to ensure the best possible stability and availability. Since there are many interfaces which are out of our control, we can't guarantee the currentness and correctness at this point. However, our ambition is to develop this service to a #real #time capability once we reach a economically sufficient user base. The smallest time frame for a statistically significant interpretation is the daily basis. Hence, the CD Barometers and their data should only be used for #swing #trading and #mid & #long #term #investments and #saving #plans. For #Day #Traders and intra-day trading it only can serve as a source for the general #sentiment and #big #picture.
Error Handling
Errors occur and may always occur. In case of an error in data streams the corresponding variable will indicate "-". The Barometer algorithms will replace the missing value with the latest previous value. Since the smallest overall use is starting at the daily basis the validity of the overall expression will still remain.
*based on our research and perspective