Hi Spyder - thanks for pulling this out for us. snip: "This means the natural offset of the index is greater than the value of the cash." To be honest, I've yet to give our latest tool a close inspection, as I don't feel ready for it, but that's neither here nor there. I am confused about the terminology, tho. From the above snip, does "the natural offset of the index" mean the same thing as 'fair value' or 'premium'? And, additionally, does "the value of the cash" represent the realtime numerical value created within the expression [(YM-$INDU) - Fair Value] ? Thank you ...
1. Yes. 2. Cash is the INDU. YM-INDU is giving you the premium. You subtract fair value to zero it out. Your sqz/str is referenced from there. Hope that helps - EZ
the reference in "building...." is the ball park comment. Since page 444 we have been looking over the opportunity. There are alot of connections in the marketplace. We capitalize on this web and the psychology of the people using the various components and their respective strategies. So you have made the proper connections in your specific comments and math in your post. The way money is made is to be able to take as great an advantage of what is unfolding as possible. We want to carefully thread our way along. Knowing that the equilibrium is there and absolutely having the support and comfort of knowing this is our forte. This is the band of neutral values. It is all those times during the day, regardless of pace and sentiment, when we see the dynamic equilibrium in effect. This additional tool reinforces and supports the work of JAN and FEB. It also tighly relates to our addition of the YM >>> ES connection. Here we get to also see the transition period from the one dynamic equilibrium to another dynamic equilibrium. The transition takes time and then the resumption of the dynamic equibriun returns to dominate. Commodities leads cash and in fact both are in a state of change. how parallel the change is for both is what is being amplified after steering to the place to look. We will have to put in the same purposeful work to grasp and then utilize this additional advantage that this tool makes available and is always available. This is powerful and collateralizing. The stretch or squeese phemomena has a steep beginning transient. the damping into the extent is not various but is always seeable as a critical damping right into the strength of the end effect. So the stretch or squeese leaves the band significantly and dwells. The turn is ensuing. You will relish seeing it. It gives you a sense of knowing... knowing about the market's workings. At some point you will see the dynamic equilibrium of the neutral band restablished. It comes to you after you have the "feel for the stick" as in flying rough air. You learn to resist the stick more or less to get to where you want to be. Here in this time slot you have reversed. You adjust your thoughts about which side is the right side. Long was right now short is right. Or vice versa. Being with what is right is the feeling we always have and the turn is just a transitory interlude we relish as an accomplishment in a transitional setting. Were we entry/exit studs we would be dealing otherwiase with a list of emotional stuff that is described in extremes and very opposite of the support and compfort feelings that derive from collecting profits and moving ahead into a new dynamic equilibrium. We are batting in a ballpark where the transitions are very well measured and understood through purposefully working to gain excellent experiences. The stretch squeese proficiency development is so strong and unique. You always have a signal....it goes on and on....and always tells you how to maintain your personal dynamic balance. This is where you become at one with the market...all the time.. the market speaks to you all the time through this part of your display. It is like putting masking tape over all the controls and just feeling the flight.... here you use the S/S as the feeling of the stick the 5way harness and the pedals...... It is where your bod touches the market in a sensory way. Who cares about the G's??? You are there and you are flying in the market..... We have the P,V of ES.. we have the P, V of YM..... Now we get to become part of the market by living the market ina dynamic equilibrium and through the turns of the market.