Re: [RT] Boos and Spoos

["BobR" <bobrabcd@xxxxxxxxxxxxx>]

Got a bond & spoos question for you Bill or 
anyone else that has some perspective on it.  Regarding your comments about 
opposite or divergent paths for these two instruments, some years ago at a 
seminar I heard someone say something like,  "a half hour before bonds stop 
trading the morning session, the spoos guys start taking a bead on where the 
bonds are going to settle and if they close up by X ticks or down by X 
ticks then the spoos will do such and such."  I would like to hear the 
current thinking on this for number of ticks and direction relationships for 
that last half hour of bond trading and the remaing snp trading.
 
Thanks,
BobR
<BLOCKQUOTE 
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  ----- Original Message ----- 
  <DIV 
  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
  <A href="mailto:t-bondtrader@xxxxxxxxxxxx"; 
  title=t-bondtrader@xxxxxxxxxxxx>t-bondtrader 
  To: <A 
  href="mailto:realtraders@xxxxxxxxxxx"; title=realtraders@xxxxxxxxxxx>RT 
  
  Sent: Monday, November 13, 2000 11:13 
  AM
  Subject: [RT] Boos and Spoos
  
  It is obvious from the RT traffic today that 
  there is a certain consternation as to which way things are going to develop 
  with the Spoo or the OEX and I have to say that I allowed myself the luxury of 
  guessing that the Boos might just for once follow the Spoos and head south, 
  with the break out of the bear flag.
   
  Truth is, one just ought to stick to the "current 
  facts" that the Spoos leads the Boos and that in doing so, they go in opposite 
  or divergent ways.   Now the actual angle may be different, on 
  different days, but it is quite definite that on a 5 minute chart, when the 
  S&P is taking a dive, then the Bonds are in the ascendant.   
  They very often differ, as I have said, in their angles, but almost on a tick 
  for tick basis they go opposite each other.
   
  I have put the two charts opposite each other and 
  you can see this very clearly.   The point is that it is the same 
  virtually every day.   It is just difficult sometimes accepting 
  this, when one looks at other technical aspects.  A few years ago the 
  bonds led and S&P followed, which must have been great for the player of 
  the instrument that makes some quite solid trends, when it goes.   
  Today, it is the other way round, but it does give those who have lesser 
  stomach for big volatility an opportunity of getting it right - according to 
  the Spoos movements.   
   
  Today has been more whipsaw than most, but the 
  movement of the one has very definitely helped to trade the other.  Some 
  days, depending on where the resistance and support is, it can be very helpful 
  indeed.
   
  Anyway, I point this all out for those who may 
  think that the bonds moves like watching paint dry, whereas the Spoos makes 
  lots of big points quickly....  Today might have been a good range day on 
  the bonds, but it wasn't, but reading the chart while tracking the Spoo, 
  provides good trading opportunities for good r/r/r trades.
   
  All comments welcome, but I hope this helps some 
  people put daily bread on the table...
   
  Bill EykynTo 
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