Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: the-phoenix who wrote (130609)	3/12/2006 12:06:31 PM
From: skinowski	Read Replies (1) \| Respond to of 209892

Re your chart - Interesting that NDX/SPX ratio topped out in September 2003 and failed to make new highs since then, diverging from the price action in both. This must mean that tech was unable to recapture the leadership position. Divergence?

To: the-phoenix who wrote (130609)	3/12/2006 12:12:42 PM
From: the-phoenix	Read Replies (1) \| Respond to of 209892

The Couch Potato Portfolio A bit more on trading off this ratio. Back in January I posted this trading idea, of selling the NDX when the ratio hit 1.38: Message 220858 If one had sold Nasdaq E-minis and bought S&P E-minis in directionally neutral proportions when the ratio first hit this level on January 12th, he/she would have roughly a 300% return in two months. Example, selling 20 NQs and buying 10 ES, requires a bit less than $10,000 in performance bond. The profit on the position through Friday would have been $38,600.