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#1 NAV

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Posted 03 July 2017 - 10:26 AM

XLF non-conformance with SPX, was touted as the reason for being bearish on the overall market by many on this board. XLF was called the leading indicator. Now XLF makes a new high today (above the March high). Now what ? XLF is leading and SPX is lagging. So is SPX the leading indicator now based on the new non-conformance ? Or have the financial bears turned bullish now ? LOL.

 

Moral of the story: There is no leading indicator or sector or index on this planet. Trade each market/sector/index based on it's own merits. All these inter-market theory is fun and makes for a good academic exercise. But when you trade them in reality, you will be taken to the cleaners 


"It's not the knowing that is difficult, but the doing"

 

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#2 CLK

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Posted 03 July 2017 - 06:22 PM

IWM vs. SPY is what I use a lot on the lower time frames, works good most of the time. 

 

An individual sector is just too narrow to be reliable though.