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It is a great point Earl. As a short term position trader, I look for
changes in trend on the hourly that relate to the daily position of the
market. When I go short, I use the S&P because it has less volatility.
When I trade the S&P, I trade the S&P, I don't look at other markets, as I
do not use inter-market analysis. This may be stupid, but my system has
worked for 8 years. It is only now that I am seeing such a divergence that
is starting to cause problems, not problems losing money, just not making
enough to justify my risk on the trade, and this only happens not because
the Nasdaq is up, it can be up, it is the up by 5% in two days that is that
is giving me such pain. Becuase I put tight stops on, and matter of fact I
am able to lock in some profit on my short positon right now. we will see
what the market dows today.
I know the market is the market, I am just making a point we all already
know, the market is crazy----but this is just flat out weird.
To Ben's response, there have been good moves to hit catching the turn.
mm
-----Original Message-----
From: Earl Adamy [mailto:eadamy@xxxxxxxxxx]
Sent: Friday, February 11, 2000 7:54 AM
To: realtraders@xxxxxxxxxxxxxxx
Subject: [RT] Re: S&P
Three factors at work here: established bull trends in equities (weekly
chart), ND (futures) has been relatively stronger than SP, and huge
average range (AR) in ND makes money management difficult. SP is the
weaker of the two, so I consider it preferable for shorting not to
mention that the AR is tighter so I have better money management. Yes,
the ND will be a faster and sharper decline when the top is in but
anyone shorting the last several tops for a position trade had very
tough sledding. It's all a matter of time frame - were I a day trader, I
might hunt for the top in the ND with very tight money management.
Earl
----- Original Message -----
From: "Iqbal Ali Sajanlal" <iqbals@xxxxxxxxxxxxx>
To: <eadamy@xxxxxxxxxx>
Sent: Thursday, February 10, 2000 11:07 PM
Subject: Re: [RT] Re: S&P
> Earl:
>
> It is very interesting to note you say " I am currently
monitoring a
> major developing divergence in the NASDAQ and when the NASDAQ breaks,
it
> will be time to short the S&P, but not the NASDAQ."
> Is it not tue the NASDAQ will fall fast and severe compared to S&P ?
Please
> explain for my understanding.
>
> Earl Adamy wrote:
>
> > I recommend monitoring both NYSE and NASDAQ. Use the NASDAQ as a
trend
> > indicator and stand aside the S&P when NYSE signals diverge from the
> > NASDAQ e.g. had a NYSE sell signal several days ago but I did not
short
> > the S&P. I am currently monitoring a major developing divergence in
the
> > NASDAQ and when the NASDAQ breaks, it will be time to short the S&P,
but
> > not the NASDAQ.
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