Actually, I have always been a book and tape guy during the volatile parts of the day and a chart guy during the range-bound periods. I find that the market is more and more range bound as we rest after the Q4 run up. This is quite normal for the market. I'm not too concerned about it. I know that I will adapt and I know that things will pick up again. The market, as in everything else in nature, goes through cycles. This thread makes it sound like it has gone from great to terrible, but it really isn't that bad. I'm always thankful for what I can get. And no, phenomena, I'm going to keep milking everything that can be milked including the Gaylard Fokker's farm cat from Meet The Parents.
Sides, it sounds to me like your concern is more in the psychology of it than the actual market dynamics. If I'm buying perceived support, I don't really worry too much about whether or not it will rip through. I don't freeze up and am ready to cut the trade if it hesitates. The only way you can be confident in doing that is to know that you will get out immediately without hesitation and with solid discipline. Here's a suggestion. Cut your size in half if your trading more than 2's. If you are using X-Trader, set your right-click to the amount that you are accustomed to and your left-click to half of that. Use your left-click to bid the support that you want to play, so that you have half of the size for half the risk. Wait to get hit on that size and have your pointer on the buy side of the DOM. As soon as the market starts printing on the offer and you feel that it is going to hold again, hit it with your default size and be ready to take something on your initial contracts and hold the rest. This way, you are not trying to catch falling piano with too much risk as it plows through but you will be in if support holds. If you can get your default size on immediately as it start, then you will have your normal load on for the move. If not, then don't chase and enjoy catching the move with the smaller size and be thankful. I think you really need to examine your thoughts when you are trading. You might find that you are defensive and, therefore, slightly fearful. This is normal in a month like this where you might have gotten burned and don't want that experience again. You will have to think positively and manage your emotions to get back to consistency. You will automatically adapt to conditions and be fine. You just have to accept what the market gives you. Don't worry too much about the bottom line and the games in there, just enjoy the moment and try to make the most out of it. I hope that will help you.
I don't know. "He" is across various markets. It doesn't bother me much. The moves are now obvious especially in the STOXX. Bid for 5000... no offered for 3000... no bid for 3000... slam! Whatever?!? We have a word for someone who does that and plays with himself all day. Of course, you can always learn to use the CCI indicator and the 5 and 30 minute charts like he does.... Surrrrreeee.
TT told me they are not going into asia any time soon??? what gives?? What have they told you? Dont hold out me now! Cqg told me by the 3rd quarter this year they are expanding Asia BIG time. I do not know why Cqg has not added more ASIA. I have been surprised TT did not jump into Korea. I do not know why they seem to be afraid of Asia. It may be that Asia is just now getting serious about electronic markets??
No idea what is going on there. Mark might be able to help us out here. I just know that it is under consideration right now. For some reason, TT is spending more time creating little add-ons and trinkets for X-Trader than actually adding value to the trader's ability to trade. It reminds me of what I read about eSignal......
A trading associate of mine knows the Flipper well and just went to Europe to visit him a few weeks back. He is still in Fixed income were he can move size and HE does look at the CCI believe it or not.
HSI strikes me as a kind of inverse to the ES. Whereas on ES, if there are two doji spikes forming a double top, chances are good you will see a further attempt to break through. HSI, on the other hand, will treat that as overhead resistance, and plummet (to put it mildly).
The problem with the Dax is that the trade has dried up. The market has become too efficient. Although it seems that there is a lot of volume printing, it is not real volume. It is program trading. Not many customers, not even that many locals. Who is going to move this market? The book is filled with orders that are eventually pulled, which does not allow the market to move much. People trying to hold markets, manipulation, etc... With more volatility one would think that the markets would widen. This is what scalpers are faced with. You see this happen to products. Remember, there have been slow cycles in the market before, but program trading is still new to the markets and it didn't exist the last slow cycle This type of trade could be it!
Your response to Sides7 question is exactly what i fear....this could be it!! I have a couple questions for you...if this is it...program trading manipulating the markets....will scalpers become extinct? I have seen the change in the DAX as well as the Dow minis and the S&P minis, the program trades have made the order book virtually unreadable and the movement incredibly choppy. Do you think that eventually program trades will get phased out, or will they be the wave of the future for electronic trading? Also, by definition, what is program trading?...and who or what type of institution trades by this method? Thanks for your input.