|
PureBytes Links
Trading Reference Links
|
>
> Hello Bill,
>
> I don't use tiki much, with or without an indicator like RSI. But
> there is some use to the index. If you are scalping for a point or
> three in the SP's for example, checking the tiki and premium before
> entering an order can keep you from "stepping in the bucket", buying
> right at the time tiki is high and premium is high. You immediately
> are in the hole. Better to wait a few seconds, let tiki/prem get
> normal or oversold, then hit the button. Also, I have heard
> consistent extreme tiki readings are a tip off that institutions are
> in the market. Don't know for sure myself on that one however.
Jim is right on track with this. When the Futures get high relative to the
underlying cash index, it is a signal to begin watching for the large
institutional arbitragers to begin program trading. There are systems This
is the value of watching the TIKI *at these times*. You generally won't see
the move reflected in price action for another 30 secs - five minutes.
I'm wondering if anyone has investigated using the $SPINX with OddBall and
forget the TIKI. If the $ADV is rising but the 1-minute $SPINX indicates
that the futures are near-term overbought (meaning that arbitragers may
start driving the price down near-term), take the futures long on a breakout
as the price is going down and reversing. One would get a better entry doing
this. The caution here is that if the cash index is rising sharply, the
arbitragers are not going to risk going short in the futures for 2-3 points.
Sincerely,
Wes Williams
|