For more than 15 years, we have provided insights and expertise to the leading 16 hedge funds in the industry. Now, for the first time, you can access the same high-quality data and models that they rely on to achieve their success.
Hedge funds use Delta Neutral as a key metric to assess the strength of the S&P 500.
The concept is straightforward: when the S&P 500 is above Delta Neutral, it reflects a positive market environment because participants are purchasing more calls than puts.
Conversely, when the S&P 500 falls below Delta Neutral, it signals a negative market outlook because participants are purchasing more puts than calls.
Hedge funds use Gamma Neutral as a key indicator to gauge market risk and volatility.
When the SPX falls below Gamma Neutral, daily volatility often triples, signaling heightened uncertainty and increased market risk.
Hedge funds with access to our data utilize this chart to fine-tune their exposure levels.
The principle is simple: when the SPX is above the Dynamic Trailing Stop [orange line], hedge funds increase their long exposure, signaling a positive trend. Conversely, when the SPX falls below the Dynamic Trailing Stop, hedge funds increase their short exposure, reflecting a negative trend.
INTERPRETATION: - Our Breadth Acceleration analysis measures the relative price momentum of the breadth among S&P 500 components.
This acceleration-based relative method offers more detailed insights and greater informational value compared to traditional breadth indicators like the Advance/Decline ratio.
INTERPRETATION: - Analyzing support and resistance is vital in technical analysis because these levels indicate where price trends may reverse or consolidate, reflecting market sentiment and psychology.
Support represents a level where buying interest prevents further price declines, while resistance is where selling pressure caps price increases.
The challenge with support and resistance analysis lies in its subjectivity, as there are no definitive rules, and different traders may identify varying levels they consider significant. We overcame the challenge of subjectivity by developing an advanced pattern recognition model that accurately identifies support and resistance levels while providing their associated probabilities.
This pattern recognition model is fully automated, eliminating human intervention and subjectivity. It is built on over 60 years of training data and has been successfully operating with out-of-sample data for 15 years. The largest and most successful hedge funds in New York rely on this model to accurately identify support and resistance levels in the S&P 500.
READING THE NUMBERS IN THE CHART– The green 100% marker indicates the predicted maximum pullback, indicating a 100% probability that the support at that level will hold. The red 100% marker indicates the predicted maximum price extension, indicating a 100% probability that the resistance at that level will prevent the S&P500 from rising above it.
INTERPRETATION: - Hedge funds closely monitor the Equity Exposure Data of CTAs (Commodity Trading Advisers) to gauge the risk appetite of fast-paced, momentum-driven players.
Primarily relying on computer models with proven track records. Traditionally, this data—typically accessible only through insights into CTA positions and performance—is now made available to you through GFR. The principle is simple: when CTAs increase their risk exposure, it’s an indicator to do the same; when they reduce risk, it signals a need to scale back, as their strategies predominantly follow momentum trends.
INTERPRETATION: - The charts display CTAs' exposures to equities, bonds, commodities, and the US dollar over the past 10 years.
CTAs, primarily automated trading systems often referred to as “black boxes,” are well-regarded for their exceptional momentum-driven strategies. Hedge funds rely on this data for an objective analysis of which asset classes are currently viewed as buying opportunities and which are being evaluated for potential selling. Understanding CTAs’ exposures is valuable to hedge funds, as these automated systems operate without subjective bias.
INTERPRETATION: - Another valuable insight from CTA exposure data is their positioning in bonds, commodities, and the US dollar.
This information is essential for understanding which asset classes are currently being considered for buying opportunities and which are being assessed for selling opportunities.
Hedge funds utilize the current exposure data of their competitors to evaluate market sentiment.
This data, which is generally available only through access to their positions, is now made available to you through GFR. The core principle is straightforward: when hedge funds are overexposed, it’s a signal to reduce risk, and when they are underexposed, it’s an opportunity to increase your risk exposure.
Another key insight derived from hedge fund exposure data is the Hedge Fund Sector Exposure Data.
This information is crucial for identifying which economic sectors are currently being considered for buying opportunities and which are being evaluated for selling opportunities.