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Trade what you see and what the picture tells you and you will
be alright no matter what you trade. If not learn how to read the picture.
> Good luck and a good week end. Ira.
That is absolutely right, Ira. However, I always trade with a chart that
has an S&P chart under a T-Bond, so that I can, on a 5 min time frame, see
the two instruments trading together. These days they tend to be
divergent - especially on that time frame - and it can (but very far from
always!!) help to enter and exit. But, as we all know, the Spoo can turn
round in a flash, which can have its problems. Fortunately, the bonds move
fairly slowly most of the time, so that a sudden move on the S&P can give a
good lead and lead time, to get to the broker and get a good fill, on the
bonds. Doesn't always work, though!
But, in general, you have to trade the chart in front of you. You have to
be able to read that particular picture and, from experience of that
particular instrument, act accordingly. Otherwise you end up with the
famous "well, it should have done..." The fact that the Spoos and the Boos
run contrariwise most of the time is not good enough to trade one against
the other. However, I do know one person who is trading the bonds and
executing his orders on the euro bunds, electronically. He seems to be
doing well, so far. Personally, what I would love is to be able to do is
trade the bonds electronically, here in England.... Do you, or anyone else
have further information on that score?
Bill Eykyn
www.t-bondtrader.com
"Learn to read the tape"
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