Predicting market movements using the Dataswarm Zeitgeist

Mar SPY

Above – DataSwarm Zeitgeist (pink line) tracking the SPY ETF (based on S&P 500) vs its market price (blue line)

Below – same for NASDAQ based QQQ. 

The yellow lines above and below the pink Zeitgeist line are the Bollinger bands (standard deviation level above and below a moving average of the Zeitgeist).  Zeitgeist volume is shown at the bottom of each graph in pink. 

Mar QQQ

The last few weeks have seen a good example of the DataSwarm Zeitgeist’s ability to predict market movements. They say pictures are worth a thousand words, and the charts above tell the story.

The charts above show the daily DataSwarm Zeitgeist for the QQQ (NASDAQ ETF) and SPY (S&P 500 ETF) set against their traded prices. Note how the SPY Zeitgeist climbs rapidly on March 7-8, before the price does. The QQQ Zeitgeist is more closely timed to the price, which starts to rise a week later.

The S&P has more primary industry, commodities, industrials and major “older” industries (e.g airlines) as well as quite a few of the larger companies in the NASDAQ. The NASDAQ is composed of more “modern” industries especially the ICT based “Tech” companies. That relative difference gives a fast high level indication of where the S&P rise growth is expected, which can be further analysed by delving into the Zeitgeist for specific sectors, and then further down into individual stocks.

The 2 week rally is a c 10% rise from floor so far.