Market risk assessment tools and tactical investment opportunities driven by curated financial insight
Baseline Analytics was founded in 2005 with a vision to assemble a variety of indicators that could identify extremes in the stock market, and to profit from the shifts in market trend following the occurence of an extreme indicator reading.
Our TrendFlex subscribers now receive timely indicator extreme alerts. We have categorized our key indicator extremes as follows:
When one or more of these indicators has reached an extreme reading, chart and commentary will follow. Here are examples of charts depicting these extreme indicators and what they suggest will happen to the market trend.
CBOE VIX and CBOE
Look for extreme readings in VIX and Put/Call versus a moving average of each indicator. Peaks and troughs in VIX and Put/Call offer strong indications of a short-term shift in the trend of the S&P 500.
Shifts in the TED Spread also help to spot extremes. As can be seen in the chart below, an oscillator indicator at the bottom of the chart spots potential buy and sell opportunities in the S&P 500.
LQD:S&P 500 Ratio GAP vs. Moving Average
Here is our basic Bond vs. Stock Market Indicator. A large GAP in the ratio (see bottom portion of chart below) provides the extreme reading and opportunity to go long or short equities.
Baseline Analytics subscribers receive updates on these indicators when they have reached extreme readings. These indicators also play a role in the TrendFlex Score, which represents a weighting of 12 key market trend indicators. Subscribers include Registered Investment Advisors, individual investors, and portfolio managers.
Subscribers most often use our indicators to hedge portfolios (one popular strategy is to short S&P 500 e-Mini futures when the CBOE VIX reading is at a trough compared to its moving average).
Visit our Premium Services page for information on our services. Baseline Analytics is currently OPEN ACCESS, however our modest $79 annual fee will be re-introduced in the coming days (A 4-week Free Trial will be available).