Markets Making NEW Highs

Although I really only play the RUT now ...look even the weaker NDX has Made Nice Highs so for today without a sell signal...3 already over the last 2hours.

Sit and wait for your short signals folks,... but don't fight the long signals...like we sometimes do.

As a trader the surest way to eat up your gains from your last trade ...is to hold a position against the signal,..right now we

are still seeing buy signals here even on the fastest chart...ie 1m !

Here I show a 1m NDX that has been on a buy since FRIDAY afternoon with a 40 point gain!

Trust me when I say when this chart goes on a sell signal

it will be ahead of many of your other signals that are buys on higher time frames.

Good traders trade short term trends....and don't anticipate turns but wait for actual signals...just know that.

Sorry chart below should say and NO sell signals...hmm wonder if that was a freudian..

Edited by Mr Dev, 25 February 2008 - 11:18 AM.

But ...that said I got show what just came up on my Signal Chart for the RUT...the one that got me long Friday Morning
.....before the big comeback rally.

see below.

Edited by Mr Dev, 25 February 2008 - 11:28 AM.

But ...that said I got show what just came up on my Signal Chart for the RUT...the one that got me long Friday Morning
.....before the big comeback rally.

see below.

Mr. Dev...what is that study if you do not mind sharing

The NDX SIGNAL

provided you just under 40 points in just a few hours ...
hope you enjoy the profits.

Edited by Mr Dev, 25 February 2008 - 11:39 AM.

mr. dev, how do you distinguish a long exit and a short using the same chart?

Although I really only play the RUT now ...

Since you largely play the RUT now....do you draw the inference that the performance of the Russell equates roughly to the direction of the general market?

Specifically, when the RUT outperforms to the upside, do you have a bullish bias toward the general market? I know this IS a rhetorical question...but would like to learn your response.

Thanks.

P

Edited by peregrine, 25 February 2008 - 12:34 PM.

mr. dev,

how do you distinguish a long exit and a short using the same chart?

It just depends on how much one wants to trade..

it could be a short on that chart , ....as long as you remember buy it and go long when it flipps to back up to a buy,...


..reason....next higher timeframe is still on a buy...

so you can short it if you want .....with the RISK of a SPIKE UP at anytime fast enough to negate any profits.


That's why when I would day trade (which I try to avoid )... on a chart like this against the next higher timeframe I would exit fast,...usually 30 seconds to 3mins. while

my trade was profitable.. and look for the reverse signal.

That's back when I would trade something like 80 trades a day on the NDX ..

And by the way I would put multiple winning days back to back using this method.

Results we good for me..with 78 trades something like 21 losser and 57 winners.

Losses were small amounts so I actually could NET 58 points a day. ....on a day where the NDX was stuck in a 20 point range!

Although I really only play the RUT now ...

Since you largely play the RUT now....do you draw the inference that the performance of the Russell equates roughly to the direction of the general market?

Specifically, when the RUT outperforms to the upside, do you have a bullish bias toward the general market? I know this IS a rhetorical question...but would like to learn your response.

Thanks.

P

How ya doin P?
To answer the question ....no not really,..there are many markets doing different things,..but I am so focused (cuz that's where my money is )on the RUT and its set ups

that I don't care if the others follow while I'm in the trade....but they often do as you know trend together within an average deviation.

But I admit to watching a 5m price chart overly with the NDX and RUT...I often see that on that chart if the RUT crosses higher than the NDX

the market has a positive bias,...compare to if the RUT has either not held up as well and crosses weaker on the 5days then

even if the NDX and S&P etc are stronger,...they will suddenly weaken.

So sorry to say not really,...and then have to tell you that I do make a small comparison every once in a while to distinguish

whether the RUT is riding,.....above or has crossed below the % move of the NDX.. only reason I did share,.. is in case you find it helpful.

Like most all my stuff I don't back test it,..as I watch it work in real time over and over enough to know.

best

Edited by Mr Dev, 25 February 2008 - 01:52 PM.

Did that make sense? I thought about it more and....I think your question was a good one,...maybe I should of said yes first,...but I'm so focused on the RUT set ups and trades that I try not to think about it having an inference on the markets,..but it is there in the back of my mind trying to push forward. I just wanted to take you the long way for both our protection ...mainly because I just don't want to try and focus on bigger pictures..other than what I'm trading. NOT politics or how it may relate,..not housing ,..unemployment ,..nothing! I just want to stay in my little trading box !

Edited by Mr Dev, 25 February 2008 - 02:11 PM.