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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket. -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (85)	2/28/1999 11:25:00 AM
From: James F. Hopkins	Read Replies (1) \| Respond to of 2103

Dale; THat's good in fact it's why I started this thread, Trading the Q, is the focus. It's the most Volatile of the indexes, has a good sample of internuts in it, yet seems to avail itself to timing as good or even better the other indexes. ----------------------------- The UOPIX & USPIX have been called to my attention since I started the thread, ( no load NDX trackers that are leveraged 2 to 1 ) The UOPIX is the BULL fund, and USPIX is the bear fund, and they seem to double the moves of the NDX sort of close. ------------------ The disadvantage of the above is you can't day trade them like the Q, and have to accept the closing price of the day. -------------- Timing would be very important with any of these if you don't want to get burned, but I don't see why we can't with a little help time them, at least enough to catch half the bigger trends, and even if we stay cash a lot and only catch half the moves of the NDX that should beat most of the market. --------------------------- RE your I checked back to early 1998 and paper-traded the NASDAQ based purely on MACD lines and histograms. When the lines cross and the histogram changes hemisphere at the same time, buy/sell/short/cover accordingly. While I've never got into that style TA a lot, and I'm not sure of what a histogram is, I'm sure it's very much a valid style and would welcome it as a conformation of calls my style renders. I know what the MACD is though and like it. ------------------ TA is more valid than not, my reservations of using them on an index is not a lot, and it mostly centers around the fact that an index itself is a trailing indicator. At least cap weighted ones like the NDX are. I like to look inside the index at the the way the Larger ones are doing in respect to the smaller ones I call it the head/tail style. Still in placing a bet on taht I also like to look at TA for conformation, while I may not bet on index TA alone I won't bet against it. In other words if I'm going to leverage I want Both the Sun out and the wind going my way. ----------------- I trust that right now you have a fair down signal showing ? I know I do , as the head is falling faster than the tail. My focus this coming week will be if any rally shows up, & which part of the index causes it, as once the down trend has started ,( like now ) rallies caused by the tail ( at the expense of the head are false, ) also they can signal a lot more down side. The head needs to lead the turn or it won't hold. That's one thing TA might miss as it's measuring the gang as if it's a single stock, and tends to over look how the relative liquid level changes inside the index, -------------------------- Sort of like water flowing in and out of some harbors, the current can actually reverse on the surface, and the tide look to be coming in, yet the water level can still be dropping. Or the other way around. ------------------- Thanx for the post and please post anything you see on the NDX, or the ways to trade it over here, ( however I hate "index options" and won't consider them any thing but suckers bets ) why pay the huge premiums, spreads, and be a victume of the sharks that skew them. they do not even track the index close, and ripped you off on any real turns with huge skews. Jim