OMG @bone why is this news? You push exchange-traded spread trading, which means it doesn't matter so much which direction one leg goes. Of COURSE you do not have daytraders! You have swing-spreaders! Methinks bone is smoking some funny tonight. Like, some crack. (Gasoil crack spreads, of course, hehe)
Spread trading has nothing to do with the direction of one leg as you mentioned, it has everything to do with the trend (direction as you call it) of the spread differential. We are modeling and trading the trend. And spread differentials tend to trend really well.
Exactly. That's why you do not have daytraders. (It is what i tired to say, but you made more sense hehe)
So this is a spread differential. It is a Eurodollar Condor. This trends and behaves much much better than the outright STIR instruments. And it illustrates my point nicely about a really well behaved quite obvious spread trend. In this case, if you bought the Wings and sold the Body of this futures Condor, you've been GOLDEN for a while now.
Yeah, I know, right? Hey sure, you can make some coin on the bear side in the normal ups and downs of a stock trending upward, but you can make a lot more with the wind at your back, surfing along with the trend. I KNOW it's a bubble and it's gonna bust soon. That's okay. Until it does I'm not gonna stay out just because the market is up tight and outtasight.
Don't worry, a close below a moving average and/or two (2) lower highs and lower lows and I am out (with the loot). I can even go short and ride the sucker down if I have a clear short signal. There is no bear market, bull market or "bubble" market, only traders on the wrong side of the market, end of story and case closed.
Indeed! Trading spread differentials is a fascinating and potentially lucrative business, too bad I don't have the time to do some research and backtests on that field.
Well, if you ever want to work at a hedge fund or a bank desk or a top tier prop firm like DRW it is a necessary skill.
Nobody like you right now Growley, because you admitted you eat slow-moving kittens. #sad A pox on thee!
Today's action was certainly off kilter in the indices. Couldn't make head nor tails of it for the first half of RTH, and then of course we get that afternoon rally. Grr.