================= Agree; strong uptrend. NQ contract looks much weaker today; looks much weaker all year, underlying stocks group still in long term downtrend, medium term downtrend/ same for QQQQ, many teks.
Nice chart...anyone has an updated one to present? (I don't have a charting program to do this neat depiction of divergence and convergence of small vs large cap....thx.
Yesterday and today, lot of talk on CNBC relating to how Russell 2000 (small caps) is kicking butts of large caps... Is it enough of a contrarian indicator? hmmm....
Sold short 5 @ 750.50 into the close. Who wants to fade me??? --- bring it on!! ER2 bent me over and has been nailing me all day... Stop @ 753.20
It will be interesting to watch this next week (after futures expiration today)...yesterday and today, er2 actually got weaker towards the close (relatively).. it seem to be running out of steam since the beginning of March (eventhough it was making new highs). Negative divergences in oscillators (macd and also money flow) on the daily chart. Longer term weekly chart however looks pretty solid (uptrend). I usually trade w/ a mental stop wider than yours but I agree with you that some impending weakness is on the horizon. All the Best!
Taking a couple contracts off the table at 747. Moving my stop to breakeven and going to let the rest ride. Seems like we've established some conditions for a major S break through 746.60. I would think that a good break down to 745 would entail a stronger move, possibly to 740. Mike
...thought today might start the slide but then again it became a nothing day...wonder if the market is heavily shorted that it can't make its move down...may be it will take the long way home shaking longs and shorts alike. Daily ranges have been so narrow for the longest time, my patience is running out. Good luck on your short not getting shaken out.
Hey thanks lynx - I didn't post earlier but my B/E stop was taken out at 750.50 so I am out of this trade with a small profit on 2 out of 5 contracts. I too was expecting a slide but things held up at 746 so that made me a bit suspect to any further downside. Today was an interesting day however, similar to Friday IMO, where the ER2 is still trying to figure itself out. We may see several days of this type of behavior, but, any breaks above 754 or below 746 should have some continuation. My objective at the moment is to seek low risk peaks and valleys. Good trading to you, Mike
Good to hear you made some $$ -- yes, the next few days will define which way its headed...it could be more probable Russell2K is headed down for now... <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1015120>