The three elements of the market are up, down, and volatility.This chart represents the three trading elements in our model's daily performance. The green represents the strength of the up bias, the red the down bias and the yellow, volatility. Thus the model presents an investable bet daily on the up, down, and vol. Up bias over vol. represents and confirms up trends. Down bias under both up bias and vol. represents lack of bear conviction. While the bears have much work to do, the base action of this year is being challenged.
