US Institutional Protection Indicator

Institutional investors are usually better informed and implement a consistent hedging strategy.

This indicator shows the hedging behavior of institutional investors in relation to the price development of the stock market.

A signal is displayed if these two trends are different and exceed threshold values. This behavior can often be seen a few days or weeks before a stock market decline.

The hedges of the institutional investors usually have a maturity of 30-60 days. Depending on the situation, more extended periods are also possible.

Use the US Institutional Protection Indicator to optimize your investment and trading activities.

• Protect your portfolio.

• Check your LONG positions.

• If you are a trader, SHORT trade opportunities may arise.

If the hedges of the institutional investors had a maturity of plus-minus 30-60 days, then the price declines in the S & P 500 or Dow Jones could be hedged very well.