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Considering two golden rules of trading, here is how one can handle such
dilemmas:
1 - GO with the trend: If the trend is Nasdaq as a dominant market, don't fight
it, include it in your game plan somehow.
2 - GO with your system: If it says sell SP, sell SP. Now that is possible only
if you are in phase with your system. If your guts keep telling you you are
wrong ignoring Nasdaq, than take that into account, fix your system, and then
trade it without questioning it further.
Hope this helps,
Gwenn
Michael Mangiafico wrote:
> The S&P posts today that Ben put out are an example of what I think is
> simply amazing. I have been short the S&P since yesterday morning. It is
> great when you analyze something and your work is correct. What shocks me
> is I am right, but the 3% moves in Nasdaq negate what gains I should be
> getting on my short of the S&P 500.. The power of the Nasdaq is quite
> insane, forget 5% per month, how about 6-10% per week. At this rate, we
> should be up 100% by the end of May.
>
> My point to this post is simple: Is it really appropriate to trade the S&P
> anymore, since Nasdaq is all that matters?? Analysis of the S&P really does
> not matter if the Nasdaq continues on such a crazy move, as it will negate
> movement, up or down, in the S&P. Anyone notice the S&P has really gone
> nowwhere in 3 weeks.
>
> mm
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