you guyz are nutz. it's a bull market. i have been banking by buying Q calls on weakness and selling on strength, and spread trading the NQ's vs. Ym don't fight the tape stop trying to predict the top. when it happens, there will be plenty of signs. otoh, bears fuel a bull market. lots of stops, margin calls etc. keep at it. tia
you have been "banking" on buying calls on the QQQQ while this index has been sideways for 2 months. Better yet prices have been in this range since early November. So essentially, one could "bank" on buying puts on strength as well. Funny how that works isnt it? And please dont insult our intelligence with your spread trading the NQ to YM rubbish. The YM was far outperforming on the upside to the NQ until the past week or so. Of course, I'm also certain that you have a selective memory (i.e. you happened to have a good 3 days and suddenly "you been banking" for this entire "bull market"). As you were son.
One thing to note here though. When commercials get short, there are no margin calls and stops to fuel the bulls. It is when the small specs have a large short position (which they don't) that a bull gets fueled.
the 3 month commercial paper still gives plenty of room as far as the yield curve is concerned- interest rates will probably have to have an effect on balance sheets before many abandon their positions. Data is coming in weaker , that might give you your desired results temporarily- I think that you'll have to see treasuries fall before a considerable tumble in the cash markets followed by commodities later on.
"you have been "banking" on buying calls on the QQQQ while this index has been sideways for 2 months. Better yet prices have been in this range since early November. So essentially, one could "bank" on buying puts on strength as well. Funny how that works isnt it? " it's about volatility. Nr7 days and relative strength (NQ v. YM) when the Q calls get oversold - buy them. every time you have some silly selloff, and the market hits a low point for the day, there have been some great deals in the Q calls. and then I pare them off for profit (i almost never add to a winning trade, but i am generally a contrarian). "And please dont insult our intelligence with your spread trading the NQ to YM rubbish. The YM was far outperforming on the upside to the NQ until the past week or so. Of course, I'm also certain that you have a selective memory (i.e. you happened to have a good 3 days and suddenly "you been banking" for this entire "bull market"). As you were son." i have been pimping this trade in ACtive Trader on Financial Chat so feel free to check the archives prices regress to a mean YM/ES/ER2 been WAY outperforming the NQ (e.g. Q's) it has been very profitable to do spread trades on these trying to catch a regression to mean, which has happened. note the NQ (and Nasd Comp) been outperforming the YM recently. this HAD to happen fwiw, i don't really use conventional indicators. i am big on TA for indexes, but i use primarily Market Profile. Clearly, when one index is trading near top of high volume node and another index (the NQ - which is same as the q's) is trading near the low of the hi volume node, a regression to mean was the hi probability play. and it has worked. NQ has actually been setting up a wonderfully bullish consolidation pattern. that's been my analysis for some time. i am long NQ futures, Q's calls, and also have been spread trading to take advantage of the mean regression (which i have mostly scaled out). the other day, the put/call ratio at 41 strike Q's was FIVE TO ONE. if that is not bullish, NOTHING is if you doubt this, then spend some time in ActiveTrader on financial chat. i have been pimping this trade strategy for about 2 weeks. i also (fwiw) have been pimping gold for about a year (been holding MIDSX since 1998 fwiw also), and was EXTREMELY bullish on VPHM after that hyooge selloff, loading up on the 10's and buying a ton of calls, 1/2 of which i have already sold generally, my strategy is to buy weakness and sell strength, and i use a combination of Market Profile, fundamentals, and "field DD" my primary income is YM scalps though, which is pure price action - TICK, AD, pit noise, etc. the NQ's (q's) are in a remarkably bullish pattern
also, as a side note - i think Market Profile Analysis becomes MUCH more useful when you look @ quarterly, monthly, weekly , and daily market profile analysis. im a firm believer in the strength of Point of Control and Value areas