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Strategies & Market Trends : E-Mini Pit

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To: the-phoenix who wrote (4696)7/25/2002 11:51:15 PM
From: Dan Duchardt  Read Replies (3) of 11288
 
It's great this worked out for you today, but I think it was an extraordinary day. I wonder if you can extend your chart back several days and see how it would have done. The chart below comparing NDX to SPX shows that todays divergence was very unusual in recent history (setting the window to 7 days makes a pretty dramatic comparison; 11 days or 13 days shows that several days back around July 11-17 this position would have been on the wrong side. I don't know how you tell when it's a good day to do this, or which side you want to be on, although I did note yesterday that the ES NQ difference had grown considerably of late so I'm not surprised to see it closing some. I'd sure be interested if you can find some way to predict these relative changes.

stockcharts.com

Dan
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