I'm sure some traders would argue the opposite is true (ETFs move individual stocks). That's why some stock traders use them as leading indicators. However, I personally believe that both are relevant. Sometimes ETFs move stocks, stocks move ETFs, and ETFs and stocks move together.
Hey K-Rock - Thanks for the reference on the ACD breakouts - seems to be another great way of handling breakouts (using intraday data, rather than off the S/R from prior days). Is the 3 pt. band above the 30 min high and below the 30 min a range expansion number that you've come up with based on experience, or is that standard to the ACD breakout method? Is this from Mark Fisher's "The Logical Trader"? I've thought about getting that book. Or do you have another web source you can refer me to learn more about the ACD method? I only take divergence trades when price has pierced the Keltner channel on the 5 minute chart, and then turned back on a opposit colored candle (i.e. a red 5 minute candle closes after the upper KC has been pierced). There was an acceptable divergence set up that met my criteria at lunch time yesterday, but I was away from my desk at the time. The rest of the day, after KC filter criteria was met, price kept on going and didn't create a divergence. Sandy
I'm sure some traders would argue the opposite is true (ETFs move individual stocks). That's why some stock traders use them as leading indicators. However, I personally believe that both are relevant. Sometimes ETFs move stocks, stocks move ETFs, and ETFs and stocks move together ---------------------------------------------------------------- Very good point and I kind of agree with this. Obviously traders feel more confident to buy stocks when markets are going up of course. But a lot of these ETFs were created very recently. Same with Eminis. I don't believe any traders make their decisions on individual stocks depending on the ES, which is itself clearly moved by the S&P. So, I am still wondering how ES can be trading so differently than S&P, and how the fact that most traders would take 2 points would affect it. Thank you for clarifying it. Just heard the job numbers. Looking really good for equities. We might have a huge day today!
The 3 pt. band is something I picked up from someone else trading the ES. Since I have been using it (for about 4-months) as a filter to help determine if the market is range-bound are trending it has been very helpful. There are a lot of good threads here on ET about the ACD Method. It seems like the method you are using is similar to a trader here on ET named "no_pm_please". If you haven't already read his threads/journals you should check them out.
Well, I screwed up because my price was hit while I was typing. I now have an order set at 1294. I did not get the first order in on time to do it.
4re - Well, your 1289 level did terrific with this morning's labor info. That level was clear from yesterday's high. However, I'd like to understand how you chose the 1293.5 level as the next breakout level - especially since that level was presciently the exact high so far this morning. Sandy
Actually, I just changed it back to my original 93.50. Seems like we are having a little trouble getting through 93 right now so when it wrnt up 93.75 I will consider that noise and 93.50 still in effect.