At the moment trend remains up. We had a real nice today and made a new high. Could it reverse tomorrow? Certainly, but I remain long in my thinking for now.
5 mins. We had 2 tops in the morning 10:10 and 11:40, and at a higher price 2 tops at 2:30 and 3:30 ET while RSI going down...
Looking across my equity symbols, lots of them are looking like minor reversals are in play on the dailies. NQ looks like a great short setup down to about 6100 if today's low fails.
Going back to this... my personal experience has been that keeping an eye on a variety of symbols is useful for swing/position trading. Not so much ES vs. NQ but like indices versus sectors, key stocks and a broad selection of "normal" stocks, as well as bonds. It's of course more relevant when something interesting is going on in the market, as now, versus the run of the mill bull grind. Right now for example we have a situation where the indices are looking like they could be a short but T-bonds are still extended, which to me suggests that although a short could work, there's likely to be a more significant inflection point in the coming weeks worthy of more risk and a more ambitious target. I don't see any reason why the same wouldn't apply to day trading though I think operationally it might be more hassle than it's worth. Trading the dailies or higher you have the luxury of time to flip through a bunch of symbols and timeframes to see what if anything stands out, and formulate a plan, which usually isn't the case in day trading. What you don't want to be doing is getting into analysis paralysis or fighting the price in front of you because XYZ is doing something different.
On a couple of weeks horizon, i am bullish. However, on a couple of days horizon, I think volatility will increase. Today, we had great news on GS and BAC. XLF moved up big time. But the overall market moved slightly, and in a narrow range. Volatility was low today. Buyers are cautious. The institutional buyers are cautious.
Certainly was a short term sell signal on futures. We have not seen that on cash, so I would assume that this indicates the overnight pullback that we see in futures and not yet a reversal down on RTH daily.
Maybe. Sounds reasonable. I think you'll easily get into paralysis by analysis doing this, so I think it should be limited and have some simple rules. Yesterday was actually a great example of how a divergence between NQ and ES/YM indicated limited upside and potential for a sell. ES made marginally new highs, but NQ was well of it's highs and actually making lower highs at the same time. As I'm paying less attention to these patterns in real time, I didn't spot this divergence until after the close.