NLO Market Indicators

NLO Market Indicators represent our proprietary model, which incorporates various market indexes to provide insights into market direction. This is a new model, and we continue to seek useful data and backtest it against historical market peaks and troughs.

There are two indicators. The first is called Market Score, represented by the green line in the chart below. Our observation is that this indicator has been highly effective at identifying market bottoms at a value of -6. Therefore, if and when the Market Score reaches -6, it signals a time to adopt a risk-on strategy. The last occurrence of this was on June 13, 2022.

The second indicator is the Dow Theory Indicator, which we utilize as a sell or bearish signal. This is represented by the red line on the chart. Our observation is that whenever the Dow Theory Indicator reaches -1, it signals a time to preserve capital or raise cash.