just to give a follow-up on yesterdays Bund future examples (and also show examples where it didn't work), here's todays action up to now The market again bounced at the A down level, but then broke below it an hour later. Exit point of a possible mean-rev trade should have been after the confirmed A down in my opinion (or already after the first close below the A down? would be a faster exit than to wait for A down confirmation)
I hear you flip. For Cl A = 8 and C=13 ticks and CL is a monster when it comes to VOLATILITY. There are only 2 ways to trade CL, either swing trade and wait for 2-4 days to get real ticks or fight like hell every day during day trading. Anything in between is DREAMING. WHO WANTS TO TAME THE TIGER? http://www.screencast.com/t/NunPWpFKU Someone replied to my question as to " Who wants to tame this tiger"? by giving the right answer that a trader with a PLAN. I agree but CL requires lot of screen time otherwise all is left in the end is THE PLAN.
Since Sept 1st, if you were short the SPY, you would be down 1% to 2%. If you instead got short the market via the SPY/FXI spread I've been talking about the last few months, you would be up over 24%. I've attached the spread chart. I'm just trying to show creative ways you can be short the market without trading ES.
Here is a spread chart of SPY over Copper. Up over 30% over the last 30 days and making fresh new highs.
Of course I'm watching Cotton. Failed monthly A up earlier in the month. The A down is 93.90 but the weekly A down was 99 and it confirmed.
For those of you that care, USD/JPY trading at the lowest levels since WWII. This is pretty big news. Also pretty bullish for risk assets. Here is the weekly chart.
Yep I think riskarb has a friend who only trades the pair and does quite well, on a side note eurjpy never broke 100, I think the low was 100.71.