Lee all I trade is the indexes, I no longer daytrade any stocks at all, so that's what I watch! And no matter how "good" the stock you are in is trading, if the indexes roll over and break critical support like they did yesterday, few will survive unscathed. And stocks with any "problems" or weakness are slaughtered. So if you are not watching the indexes, you have no heads up that a big move - which could damage - or improve your profits is about to occur. By watching the indexes, I've been able to be ahead of the moves, and already short when the big tanks happen. Like yesterday...I was short the futures from the open due to my previous night's view of the indexes.
And when trading the NQs, if the SOX tanks, or the BTK is about to breakout, then it's very important to know, as the NQs respond to their every move...especially the moves of the SOX. If the SOX was not crashing through support yesterday, I doubt the NQs - and then the NDX would have broken the April lows.
Studying the indexes each night - and intraday is critical to any futures traders results. Things like the 3 Black Crows on the SOX WEEKS ago, set up the recent plunge.
The dollar crashed through important support last night, I watch that too. It has a lot to do with recent market weakness believe me...and is not helping the weak open today. |
