The ISE Equity

Once upon a time the ISE Equity was my favorite indicator. It was like putting my hand on the pulse of the market. The chart is shown below.

In the past year it has given two false signals. Like the CBOE equity it gave a false signal earlier in the year. The signal came in early April, so it was a little better than the CBOE Equity. However, it now gave off another false signal. This is directly attributable to the options trades in stocks like Citigroup and Bank of America.

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