Crude Oil Leading Many Markets? I was doing some homework last night, back testing different entry signals etc. By mistake I plugged in a system that takes crude oil signals and applies it to the current market I was testing - Seems that these past 2 years or so, signals taken based on crude oil were more accurate ( using this specific trend following formula I was using) than signals based on the underlying contract!! To clarify I am testing longer term model using the DAILY chart. Cotton, Coffee, Corn, beans, Gold and SP500 all did better based on price action/ signals using crude oil prices than their own data!! Obviously this requires more in depth work, statistical analysis and forward testing but I thought it was interesting enough to share with you and give you some ideas perhaps even something to look into on intra day basis? Levels for October 6th 2021 below:
Daily levels for Monday Oct 11th below, weekly newsletter is now live here with weekly levels and a quick "trading psychology overview"
Good insight into VIX and stock index correlations on our daily blog here. Levels for tomorrow, Oct 12th below: