might buy if you were methe market has went over our trendline which gives us confirmation for a clear buyy
FIND
FINDING THE BEST ROI BETWEEN SIMILAR ASSETS 📚 With Alpha's PoP💬Introduction :
Today we are comparing the Dow Jones, NASDAQ, and the S&P by their annual performance to show how our open source indicator "Alpha Performance of Period" (PoP) can be used and why the results are useful. We will also look at other markets later in the writeup to see how they compare and to get a sense of which markets provide the best risk-to-reward and ROI.
The idea here is to compare highly correlated markets over time to see which of these markets preforms the best overall represented by a period chosen by the user. This will help tell us which of these indexes is the best/worst to trade/invest with on average.
For this article we will assume "best" equates to "best for long positions", but the indicator could be used for other purposes such as best shorting opportunities (largest drawdown amounts).
Comparing these indexes shows that the NASDAQ has historically outperformed, while the DOW underperformed, and the S&P has been somewhere in the middle since the tech bubble on a year-over-year basis.
You can also see this on the chart as represented by the indicator's metrics contained within its label, but we will summarize it below:
NOTE: The figures below are rounded up to the nearest .01%, see charts for exact %'s.
Equity Indices Total Annual performance results: (main chart)
(Jan. 2000 - present)
SPX = +111.79%
NDX = +156.10%
DJI = +117.65%
Now let's look at the quarterly and monthly performance:
Equity Indices Total Quarterly performance results:
(Jan. 2000 - present)
SPX = +104.57%
NDX = +160.75%
DJI = +111.65%
Equity Indices Total Monthly performance results:
(Jan. 2000 - present)
SPX = +91.22%
NDX = +125.274%
DJI = +101.68%
Equities Summary:
While the NASDAQ has had periods of underperformance (for example the dot com bubble burst), on each of the charts you can see that not only has the NASDAQ outperformed (and the Dow underperformed) over time, the NASDAQ has also generally outperformed during each different period measurement. We won't do the math for each period here as that's the main purpose of this indicator, but you can apply the indicator on your own chart and take a look at it yourself.
The main takeaways for us are this:
1. You are better off trading and/or holding the NASDAQ when compared to the 3 main indexes.
2. You are better off trading the S&P than the DJI.
3. The performance of the NASDAQ during COVID isn't an anomaly, and it doesn't necessarily indicate a tech bubble, outperformance in a specific period and overtime is the norm with this index.
Now that you see how this works on the indexes, let's showcase how it can work for other markets.
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RARE EARTH METALS~
Rare Earth Metals Total Annual performance results:
(Jan. 2000 - present)
GOLD = 193.87%
SILVER = 186.72%
PALLADIUM = 361.27%
Rare Earth Metals Total Quarterly performance results:
(Jan. 2000 - present)
GOLD = 201.80%
SILVER = 197.60%
PALLADIUM = 304.04%
Rare Earth Metals Total Monthly performance results:
(Jan. 2000 - present)
GOLD = 206.59%
SILVER = 209.60%
PALLADIUM = 283.25%
Rare Earth Metals Summary:
As you can see, despite the general public's love of Gold, Palladium vastly outperforms it. Meanwhile, we can confirm Silver underperforms. Many people wouldn't suspect Palladium was superior, but we now know from the resulting data (Hooray!).
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FOREX~
Main Forex USD pairs Total Annual performance results:
(Jan. 2000 - present)
EURUSD = 19.48%
GBPUSD = -9.03%
AUDUSD = 23.90%
Main Forex USD pairs Total Quarterly performance results:
(Jan. 2000 - present)
EURUSD = 20.75%
GBPUSD = -16.53%
AUDUSD = 20.98%
Main Forex USD pairs Total Monthly performance results:
(Jan. 2000 - present)
EURUSD = 19.57%
GBPUSD = -16.70%
AUDUSD = 21.93%
Forex Summary:
As you can see against a USD base-pair, GBP is the worst performing from the 2000's by all periods. One might assume the more popular EUR pair preformed better than for example AUD, but the reality is AUD takes the cake and preformed better than both EUR and USD by each period over time.
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CRYPTOCURRENCY~
Main Crypto USD(T) pairs Total Annual performance results:
(Jan. 2017 - present)
BLX = 1351.18%
ETHUSDT = 8967.62%
LTCUSD = 5012.80%
Main Crypto USD(T) pairs Total Quarterly performance results:
(Jan. 2017 - present)
BLX = 504.60%
ETHUSDT = 1124.81%
LTCUSD = 824.44%
Main Crypto USD(T) pairs Total Monthly performance results:
(Jan. 2017 - present)
BLX = 357.63%
ETHUSDT = 739.39%
LTCUSD = 530.67%
Crypto Summary:
Crypto has the largest period losses, but it also has the largest period gains (by far). Of all the crypto pairs, ETH offers the best ROI. Interestingly, ETH offers the best ROI of all markets mentioned in this article as well (although it also has the biggest losses and highest risk associated with its uptrends). Some might find it odd that Litecoin outperforms Bitcoin (although like with ETH, the drawdown is notably more intense).
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Conclusion:
Use "Alpha Performance of Period" (PoP) to compare markets for what is best suited to your portfolio depending on your individual risk appetite. It is meant to be used on highly correlated markets, but as you can see you can also compare different sets of markets together to get a sense of which offers the best risk-to-reward, ROI, etc. This tool thus has many uses related to figuring out which markets you want to trade based on historical data and offers a simple way to quickly compare past performance. Hope you guys enjoy it! :D
Resources:
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Is the NGas lying on the ground?Is the NGas lying on the ground? So the price established a new period minimum. It is going to test the support area around $ 2.42. This area was not tested from June 2016.
Technically, the main trend is strongly bearish. From the maximum recorded in the last November, the value of natural gas has collapsed by over 50%. It closing the week slightly above the last static support that precedes the key one identified by 78.6% of the Fibonacci retracement set at 2.34. If it were violated to the downside, would lead the price directly on $ 1.63.
The fundamental scenario that is taking shape would seem to support the technical one. In fact the injection of this raw material on the market, recently, has been superior to both the effective demand. The analysts are beginning to hypothesize a future price around the $ 2.00 before winter 2019.
The stocks, as could be seen with the data published on Thursday, have significantly increased compared to expectations and it would seem that the weather, at least for this first part of June, will not help to increase the demand. In any case, this short/medium-term bearish scenario should diminish at least until mid-June, after having discounted it during the last sessions of last week, going to lose about 20 cents of the value per unit, and then resume later.
Except for future macroeconomic changes, at the moment the price would seem to be aimed at a technical rebound and then going down again with a final target of around $ 2.10/2.20. The maximum extension could be towards 2.00 $.
So the question was " Is the NGas lying on the ground?" The answer could be " not yet but soon ".
