{"id":18371,"date":"2012-03-26T06:50:58","date_gmt":"2012-03-26T10:50:58","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=18371"},"modified":"2016-09-20T11:25:18","modified_gmt":"2016-09-20T15:25:18","slug":"back-to-spearman-and-the-bloomberg-trendstall-indicator-heads-up","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2012\/03\/26\/back-to-spearman-and-the-bloomberg-trendstall-indicator-heads-up\/","title":{"rendered":"Back to Spearman and The Bloomberg Trend\/Stall Indicator (Heads Up!)"},"content":{"rendered":"<p>The Spearman Indicator is like the &#8220;boy crying wolf&#8221; lately. But let&#8217;s not get too comfortable\/complacent.<\/p>\n<p>We need to put into the proper perspective the level and the direction to see what we can determine from the signal. As we have discussed previously, the rolling-up or -over of the indicator, above\/below the moving average is one important condition, but the level (above or below zero) is where the indicator is designed to provide a proper signal.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/twitter.com\/andrewhorowitz\" class=\"twitter-follow-button\" data-show-count=\"false\">Follow @andrewhorowitz<\/a> <script src=\"\/\/platform.twitter.com\/widgets.js\" type=\"text\/javascript\"><\/script><\/p>\n<p>From the chart below, there is confirmation by<!--more--> the Bloomberg Trend\/Stall study that a near-term high was reached and now a stalling condition is present. The Spearman is also rolling down. Now to get a confirmation, the Spearman needs to dip below the zero line.<\/p>\n<p>That may occur with a couple of more stall days or a turn sharply lower (greater than 1%) on the S&amp;P 500 index. That <em>may<\/em> be a time to either hedge out or consider lightening up long positions. From there, a short could be implemented through an ETF or options strategy.<\/p>\n<p>Just a quick heads up&#8230;.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/03\/spearman_03252012-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-18372\" title=\"spearman_03252012\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/03\/spearman_03252012-1.jpg\" alt=\"\" width=\"585\" height=\"321\" \/><\/a><\/p>\n<p><strong>The Bloomberg Trend\/Stall Indicator:<\/strong><\/p>\n<blockquote><p>TrendStall identifies points at which a trend is losing momentum and is likely to stall or consolidate. The determination is based on a Rate of Change of the ADX. The parameters for the ADX, Rate of Change, and Moving Average of the Rate of Change are user adjustable.<\/p>\n<p>The bar that has been determined to be the &#8216;Stall&#8217; point is marked by a triangle above or below that bar. The price bars leading up to a TrendStall signal are painted a different color to alert the user that the TrendStall histogram has risen above the threshold level confirming a trend is in place and a stall is imminent. The period after the stall bar may also be painted on the price chart, depending on the value of the histogram (ADX ROC) in relation to a moving average of that value. This &#8216;paintbar&#8217; period is often valuable as an indication of a slightly longer stall confirmation.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The Spearman Indicator is like the &#8220;boy crying wolf&#8221; lately. But let&#8217;s not get too comfortable\/complacent. We need to put into the proper perspective the level and the direction to see what we can determine from the signal. As we have discussed previously, the rolling-up or -over of the indicator, above\/below the moving average is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12,253],"tags":[483,283],"class_list":["post-18371","post","type-post","status-publish","format-standard","hentry","category-markets","category-strategy","tag-markets","tag-technicals","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/18371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=18371"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/18371\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=18371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=18371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=18371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}