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[Mr Dev]

Dear "active" traders, RUT & NDX thoughts. I personally watch the interaction between the RUT and NDX, and at times try and take advantage of either a spread much beyond the normal daily range of .10% - .20% differences or one's strength or weakness. This can be especially advantages just when it looks like one or the other is sure to under or out perform. For me, today was again a time to switch my focus away from the NDX that has kept me sheltered somewhat while holding short. Now it's time to head back to the RUT which also kept me feeling warm and fuzzy weeks ago when I held that index short. Normally a short bet would stay with the weaker of the two indexes, but there does come a time when we should think about switching as a way of optimizing our returns. I like to look for subtle, but wider spreads before the signals turn as a time to jump from one of the index to the other to optimize tomorrows gains. Don't just stick with some dumb signal without seeing how the two are interacting with one another. These correlations have existed between indexes as well other sectors for years,..don't turn a blind eye to them. Watch them breathe,..and then when it looks right,... move. Don't be afraid to play the NDX and RUT against each other,... esp if you are maintaining a bias. Simply determine which one will protect you or make you the most money under current circumstances,... and when the time is right to move from one to the other,...simply take that step. Wise choice or not for me today was that day. Trade well

Edited by Mr Dev, 30 May 2007 - 02:08 AM.