The Effect of Trend Following on the Market

The signal looks at the amount of put positions relative to the amount of call positions in the market, specifically in the S&P 500. And depending on those weightings, that's sort of like this risk on risk off level. So you can get some flickering in that signal, like around a big options expiration or those kinds of things. But what I found is that even though you get some of that short term flickering, it gets the big movements right, right?

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