|
PureBytes Links
Trading Reference Links
|
<x-html>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD>
<META content="text/html; charset=windows-1252" http-equiv=Content-Type>
<META content="MSHTML 5.00.2919.6307" name=GENERATOR>
<STYLE></STYLE>
</HEAD>
<BODY bgColor=#ffffff>
<DIV><FONT face=Arial size=2>This is a FWIW post! Those
who trade the bonds will know the importance of tracking the S&P, as
it affords a very good confirmation of all the other details of day
trading. As you will see from the attached chart, they run opposite each
other quite comprehensively. The only trouble, if that is the word,
is that the actual amount of movement is pretty disproportionate.
You cannot trade the bonds as an 'opposite' of the S&P, merely that when the
two are running contrary, you have good confirmation that what you are doing is
likely to work out.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Yesterday was super, but today, for example, it
looked as if the breakout of the neckline on the recent H&S on the Spoo was
going to go and go. In the event, it certainly led to some very fine
profits for those who trade the Spoo, but the return trip must have been a big
disappointment (obviously for those who were sure it had to be a false
breakout, it must have been a great relief!). However, for those
trading the bonds, it gave a very good confirmation, but moved nowhere the
amount that the Spoo did. Those who sold the S&P and exited somewhere
near the bottom, made a very nice profit, compared with the bonds.
Also the return trip was grossly exaggerated compared with the bonds moving
down.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Nevertheless, the way the Spoo confirms what is
going on for the bonds is a vital ingredient in the day trading mind-set. When
they are going down, the bonds are going up - maybe not a lot, but enough to
confirm (subject to all the other disciplines demanded) that you are not wrong
and maybe even right...</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>For me, the volatility on the Spoo might be great
when you are right, but frightens the hell out of me when you are
wrong. The measured tread of the bonds has distinct advantages, but
just don't get envious when the it doesn't move like its counterpart, that's
all. You won't win or lose a million, but you might just put bread on the
table and earn a dollop of jam occasionally. However, if you can see
a good move could come up with something like the H&S or 3LI set up or
whatever, then at least you can do that on a day trade basis with options, with
potentially good gain and very little pain... </FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2>Bill Eykyn<BR><A
href="mailto:t-bondtrader@xxxxxxxxxxxx";>t-bondtrader@xxxxxxxxxxxx</A><BR><A
href="http://www.t-bondtrader.com";>www.t-bondtrader.com</A><BR>"Learn to read
the tape"</FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<br>
<!-- |**|begin egp html banner|**| -->
<table border=0 cellspacing=0 cellpadding=2>
<tr bgcolor=#FFFFCC>
<td align=center><font size="-1" color=#003399><b>eGroups Sponsor</b></font></td>
</tr>
<tr bgcolor=#FFFFFF>
<td width=470><!-- |@|begin eGroups banner|@| runid: 9637 crid: 3667 -->
<a target="_blank" href="http://click.egroups.com/1/9637/0/_/152424/_/971290090/";><center>
<img width="468" height="60"
border="0"
alt=""
src="http://adimg.egroups.com/img/9637/0/_/152424/_/971290090/Target3F468x60.gif";></center><center><font color="black"></font></center></a>
<!-- |@|end eGroups banner|@| --></td>
</tr>
</table>
<!-- |**|end egp html banner|**| -->
<br>
<tt>
To unsubscribe from this group, send an email to:<BR>
realtraders-unsubscribe@xxxxxxxxxxx<BR>
<BR>
</tt>
<br>
</BODY></HTML>
</x-html>
Attachment Converted: "c:\program files\qualcomm\eudora\attach\Spoo and Boo tracking.gif"
|
![http://adimg.egroups.com/img/9637/0/_/152424/_/971290090/Target3F468x60.gif"](http://adimg.egroups.com/img/9637/0/_/152424/_/971290090/Target3F468x60.gif"){kind=link}