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Bruce,
At Thu, 28 Feb 2002 05:28:05 -0000, you wrote:
From:
"bondo92677" <bruce.larson@xxxxxxxxxxxxx>
Subject: Re: conversion factors for between the Indexes
Since the Dow is up 2% this month and the SPX is down 2% this month,
I suggest you use a conversion factor of negative nine. In other
words, if the Dow goes up 9 pts, that translates to the SPX going
DOWN 1 pt.
Thank you for your comment.
This seems rather cynical - but perhaps I am wrong, maybe it is just
gallows humour.
Whatever it is it probably keeps you out of the long S & P, short DOW
spreading business.
What a wonderful trading opportunity this has been.
I have taken advantage of the spread opportunity recently by:
- buying
S & P and selling DOW (several times into the fall),
- fading
the excess DOW to S & P move.
I have made more realised profit in the fading of the excess DOW move
than I am losing in the spreads, and I still have a likely bounce back to
come - or another opportunity to make more profits fading the further out
performance a second time.
Some opportunities are exploited by traders with confidence and
experience to see opportunity where others are just cynical.
I am not suggesting you are cynical, but your comment appears to
be.
I prefer to see opportunity for profit and provide service (for which I
get paid in profits) where some others see losses.
I have one client who yesterday had one of his best ever days using a
similar strategy, so I have been congratulating him for exploiting what
you apparently see as a 'lucky I was out of that spread'
situation. By exchanging experiences and ideas, (not
individual trades), we have both realised we missed some service
opportunities and so missed some profits, and we are both
wiser.
I have used his ideas to advantage today - before the US market
officially opened - and am 3 S & P points to the good on a small part
of my position - but maybe you are still cynical and on the
sidelines?
Unconditional regards, Ric.
www.traderscalm.com
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