Where can I find the premium over fair value on the ER2. Programtrading.com and indexarb.com only give the other three. Also, who do you use for Russell Index. The one on IB seems slow to update. Thanks
I have noticed sometimes trading ER2 that it if it is weak on the day and in a range, but ES is stronger and then puts in new highs, er2 will play catch up big time. I will buy er2 even though its the weaker one but it will rally kind of out of fear of being left behind I guess. The same in reverse to the short side. However er2 seems to lead es a good deal of the time. Actually a heck of a lot of the time. Also Nq seems to be pretty well correlated with er2 as well since there are a lot more small caps on the Nasdaq. I don't follow YM to much but I probabbly should start focusing on it more as well. Just my observations. Any care to offer some comments.
for anyone who trades the er2, what brokerage co. do you use? I am negotiating commissions and they are charging 12.50 plus exchange costs. Anyone getting a better deal? also I have been using slow stochastic is additions to some other indicators. Good way to see when its bottomed though lotsa times its temporary. Usually buy when K > D in the oversold area, good for a quick scalp.
I use interactive brokers and they charge 2.40 (4.80) for a round trip. No Exchange fees. www.interactivebrokers.com
From my perspective the indicators that lead NQ & ES, at critical junctures, also drive the ER2. ER2 seems to react to either NYSE or Nasdaq leading indicators. The best signals are when all key indices line up â I watch ES, NQ alongside ER2. DYOR Cheers J
anyone trade the er2 the last two days. Its been tough for me (besides Thursday afternoon) for make money consistanlty using stochastics, MAs, and RSI. This combination has seemed to work before. Has anyone used anything different that has worked in less trending mkts?
ER2 has been trending overall since October 3rd (not every day but on key market event days). (August 10th was a key market event day that setup the current price action your seeing) It's October and I recommend you look at the historical charts of the Russell 2000 during the months of October and November to help you get on the right side of the tracks. Simply, if your using a trend following method...October, November and December is a good time to use that method. If your using a counter-trend method... Stay on the sidelines unless you have very deep pockets or have reduced dramatically your overall position size to managed the increased risk exposure for using such a method during trend like trading conditions. If your using a trend reversal method...normal to large on the Long positions and small size only on the Short positions to help you make good money in range like price action between Oct 6th - 12th. Be careful in November...volatility usually drops in comparison to October and that in itself causes problems for methods that are not trend following. My point and to answer your question more directly... Has anyone used anything different that has worked in less trending mkts? If your recognizing this during trading and not via hindsight analysis (long after the fact)... This is the time you need to review your historical price action to get a better feel for the bigger picture and market direction. Last of all, if your not losing money...don't worry because your obviously doing something right. Mark (a.k.a. NihabaAshi) Japanese Candlestick pattern
From where do you acquire such enlightening information, oh maharashi, wielder of golden candlesticks, master of finesse?
To answer both questions... Historical index charts and then you map them out with key market events (key economic reports, FED related speeches, ECB related speeches et cetera. In reference to the August 10 trading day... Look at your key economic calendar for that particular trading day and then compare how prices reacted on that trading day to a particular trading day (your homework) a few days early that also had a key economic day...a very big day. Lots of free online sources that have good economic calendars and the same with historical index charts. However, preferably your own data provider has historical charts to make it easier to do your research. Mark (a.k.a. NihabaAshi) Japanese Candlestick pattern