when was the last time we had this divergence?

Discussion in 'Trading' started by OTCkrak, Mar 18, 2010.

  1. is it unusual for indu to close +.40% and spx negative? -short signal?

    -do any gurus advise to buy this market?


  2. Short high one, buy the low one.

    Isn't that "pairs trading"?
  3. risky63


    I think tomm. will put the candle on the cake.
    usually its a 10/1 ratio (approx).
    dow up 50.....sp up 5
    at cycle tops you'll get this kind of divergence for 2-3 days, but tomm. is witchin, so..................we'll see.
  4. Don't forget about that higher dollar as well. Market volatility has been held down by the large option writers for the duration of this week. The VIX is going to pop after we get past OPEX.

    DOW % gains outpacing NAS and S&P show slight de-risking as investors rotate into lower beta div payers, case is helped by higher dollar.
  5. whatever works for you. why not sell both
  6. jalee25


    I'm not a guru... but my analysis shows the Dow and Nasdaq show a bit more strength and can rally a bit longer while the S&P could be stuck moving sideways... guess we'll see what happens
  7. with expiration tomorrow, whats the psychology for pulling the market higher or lower?
  8. Day after day when you see equities BUY programs firing off only as the dollar is dropping, well that should give you a great clue as to what is leading any intraday cash session rallies. Just keep watching that Dollar and equities BUY/SELL program activity......when you see equities pumping SELL programs with a flat or dropping Dollar then it will be a pattern change. BTW, as of today's trade action Commercials were holding about 20,000 contracts SHORT in the ES off the recent highs (moderate quantity....not a lot yet).

    Also, June DAX contract is loading up with sellers, tonight once the DAX starts trading again I will be looking for sell set ups above the 6050 level. Hopefully it will open gapped up right out of the gate above that level......I will be tracking the DAX tonight for a longer term SHORT set up.
  9. cool image of the dow components..

    it looks like some are overbought and extended [MCD, T, DIS, CSCO, WMT]??, a few certainty have room but i think the move lower will be a market wide volatility event.

  10. Very insightful post.

    Thank you for the PM response back as well.


    #10     Mar 18, 2010