I get this question all the time, why do the ES and SPY systems
do different trades even though they are basically using the same
sub systems? Again it's because even though the instruments
are directly correlated with similar movement; the prices on
SPY and ES are different, and thus so are the indicator prices.
Plus ES trades 23 hrs whereas SPY only trades during cash
market hrs, so that adds even more to the difference.
An example, the ES Pro system went short on Friday taking out
the long trade that the system was in, the short setup is the
Exhaustion Short. This trade didn't occur on the SPY system
Exhaust short system. The exhaustion short is basically like
a bungee trade, where price is too extended in the short term and
due for a reversion to mean pullback. It's NOT a trade that's
looking for a major top, in fact many of these occur in strong
trends where price only has a small pullback and then goes to new
highs
ES Pro system vs SPY system
Posted by matt on 28th of Nov 2016 at 12:14 pm
I get this question all the time, why do the ES and SPY systems do different trades even though they are basically using the same sub systems? Again it's because even though the instruments are directly correlated with similar movement; the prices on SPY and ES are different, and thus so are the indicator prices. Plus ES trades 23 hrs whereas SPY only trades during cash market hrs, so that adds even more to the difference.
An example, the ES Pro system went short on Friday taking out the long trade that the system was in, the short setup is the Exhaustion Short. This trade didn't occur on the SPY system Exhaust short system. The exhaustion short is basically like a bungee trade, where price is too extended in the short term and due for a reversion to mean pullback. It's NOT a trade that's looking for a major top, in fact many of these occur in strong trends where price only has a small pullback and then goes to new highs
as I said earlier it
Posted by matt on 28th of Nov 2016 at 07:14 pm
as I said earlier it was only looking for a quickie short, it covered at the close
Thanks Matt. That fits with
Posted by sschulman on 28th of Nov 2016 at 12:30 pm
Thanks Matt. That fits with the election years seasonal chart which shows a temporary dip in early december.
yep, and again it's only
Posted by matt on 28th of Nov 2016 at 01:46 pm
yep, and again it's only looking for a quick dip,