Trading the S&P/DJIA spread

Discussion in 'Index Futures' started by esc_trader, Dec 22, 2002.

  1. esctrader that was a very helpful response. Thats what I like about your thread:- its full of substance
    #71     Jan 24, 2003
  2. what charting service lets you chart the spread?

    do you take into account news that can affect a DOW stock?

    how long have you been doing it and is it real time trading and d you make money at it ?:)
    #72     Jan 24, 2003
  3. Check out the spread from +40 to -30 in 5 minutes !
    #73     Jan 24, 2003
  4. Maverick74


    Are you sure thats right? Maybe I'm doing the math wrong but I have it in the 50 to 60 range of course I'm doing it in my head and just watching it from time to time so maybe i missed something. Maybe Esc can clarify.
    #74     Jan 24, 2003
  5. Using esc formula, my 30 min from 10:30-11:00 showed hi 68 low of -38 Maybe it was an errant tick by esignal .
    #75     Jan 24, 2003
  6. Maverick74


    Wow, today that spread went from 51 all the way up to 79. What a move. Is there a correlation to the mkt and this spread such as I noticed that the spread seems to widen on selloffs and contract on rallies but that might just be the last few days. Is this true or not? Also, what is the widest this spread has ever been?
    #76     Jan 24, 2003
  7. Maverick74


    So the spread closed at 64 from a high of around 79 I guess. Nice move at the close there. did anyone trade it today. If you did, just curious on how you went about it. It seems to me that something you could do is if the spread went against and it reaches your stop point, instead of getting out of it altogethor you could hold the side that was in the money and then when it widened some more you could buy back the leg you sold and wait for a contraction. Does anyone do that?
    #77     Jan 24, 2003
  8. Hi Esctrader,

    I was wondering whether you would be willing to say whether or not you use a stop loss in your strategy. Or do you simply buy when price spread is at the bottom of the bollinger band and close the position as soon as the price hits the top bollinger band.
    I am merely asking a question here rather than offering an opinion hence I would appreciate you input on this issue please esc trader.

    Thanks in advance.
    #78     Jan 27, 2003
  9. Setharb -

    About 6 months. Yes, although not as much as I'd like :)

    My impression is that the spread moves around alot during periods of high volatility. There seems to be a real fear in the air (war jitters?), so it has been very volatile lately. May be some wild rides on Monday, regardless of the war worries we are really oversold right now short term. Look for big moves in this spread at major tops/bottoms in the mkt.

    I am currently short at about 28, so I'm a little underwater right now. If we get a big move down on Monday morning, I'll likely take that opportunity to close it out. I have it currently around 50-70, but could go anywhere from 0-90 I think at this point.
    #79     Jan 27, 2003
  10. Maverick74


    I think we touched 90 today did we not. Wow. Wasn't this spread close to 0 last week at one point? Thats one hell of a move.
    #80     Jan 27, 2003