About The Smart Money

Princely Mathew

The Smart Money uses proprietary indicators based on market internals to identify trade set-ups and directional alerts primarily in U.S. equity indexes and their related ETFs but also in GDX and USO.

The service is hosted by Princely Mathew, who has developed indicators using high/low data from the New York Stock Exchange. The indicators track the cumulative value of new highs minus new lows over varying time periods on the NYSE to determine whether the indexes are trending up or down.

These indicators are:

  • NYHL Long-Term Indicator, which plots on a daily basis new highs/lows going back 1 year, is suitable for long-term 401k-type money.
  • NYHL1M Core Indicator, which plots on a daily basis new highs/lows going back 1 month, is suited to traders with a near- to intermediate-term horizon.
  • NYHL1M Micro2 Indicator, which plots on an hourly basis new highs/lows going back 1 month, is suited to active traders.
  • NYHL1M Micro1 Indicator, which is the shortest timeframe variation in the indicator group, used for very short-term trading alerts in the room.

Members of The Smart Money receive directional alerts in the SPX based on these indicators, with occasional alerts based on The Secret Indicator Combo, explained more here.

In addition, Princely provides trade set-ups in related leveraged index ETFs such as the QLD using both the short-term NYHL1M Micro1 for triggers and long-term NYHL for context and confirmation. For example, if NYHL is on a buy, this means absolutely no short trades, even if Micro1 is on a sell. View the list of trading rules here.

Princely applies the same high/low tracking to the GDX and USO, whose indicators are named GDXHL and USOHL, although focuses his trading on U.S. equity index ETFs related to the NYSE data.

Daily Reports/Razzmatazz Indicators

The Smart Money also provides daily reports analyzing the Emini S&P 500 (ES), Bonds, and GDX. The analysis is based on proprietary indicators, known collectively as the Razzmatazz Indicators. These track options trading activity, and rise (and turn bullish on the market) when options traders (following the "herd") put their money into bearish bets, and vice versa.

The premise is that smart money sells premium on options while dumb money buys them. This does not always have to be the case but is true more than often. There is a reason most options expire worthless. So when open interest in ES puts increases relative to the calls, it means that the smart money is bullish on the market while the dumb money is not. So they are using the option selling machine to sell puts to the public and pocket the premium. Thus, the Put/Call Ratio (PCR) rises, hence implying a rising market. The reverse happens when "THEY" are bearish on the markets. This is a dynamic indicator that will change with time, and depending on conditions smart money can change their bias. If they do, then it will show up in the Razzmatazz. More about the Razzmatazz Indicators here.

Webinars by Princely:

A Smarter Trading System (Feb 25, 2020)

How To Use & Trade With The Smart Money Indicator (Mar 19, 2019)

Testimonials:

Princely's system has been rocking it. Takes all the emotion out of trading. Just follow the signals. No fuss. No muss. If you need excitement in your trading, just add leverage."
Member "RickG"
I'd like to take a moment to give a big time shout out to the Smart Money Room and Mr. Princely Matthews. Since joining the Smart Money Room less than a month ago, in only three trades, I have made back almost 5% of my 18% loss from a counter trend index trade that began back in June of last year. I check the Smart Money Room before open .. check it again around lunch and then again before closing to find out where I need to be positioned overnight or weekend and I'm done for the day. It may not be for everyone but it hits the sweet spot for a purely novice trader like me because it's so easy a cave man can do it. There's a reason it's called the Smart Money Room.
Member "Sloopy"
“I do my best trading and investing when someone else points me in the right direction. I have a full time job, 2 small kids and a busy life. I did a trial run on the Smart Money Room, joined and I now follow Princley on the buy/sell indicators -- he does the work for you. Literally --just follow his signals ---push the buy button and push the sell button, take your gains and use as you wish."
Member "DaveJ"
Princely's signals paired with some mix between them have been stellar. We caught a big chunk of the last move up with a long and got out just in time on Friday. If you guys are not using this by itself or to cut bias on EW you are missing BIG TIME imo. Only thing you need to do is trust the signals....So a BIG shout to Princely, also, he is a REALLY great guy. If you have any doubts or want to work on something more specific within his system he will help you out, trust me, this is how we found the best way to use them.
Member "H.E.Pennypacker"