Lately I have been busy with a lot of things, most notably by letting my losses run (haha, will I never learn) and reading for the next exam. In between, however, I have started experimenting with creating own indicators and doing my own research. Here I have a comparison between nasdaq, sml, sp500 and tran.
Of course the red arrows are nothing but wishing twigs – but it is logical if the market will correct within itself – big money circulating from sector to sector, letting small guys sell off, but not letting them sell the stocks down. For longs it is a good time to take profit – this last run has been excellent for them, and devastating for me (due to my own insufficiencies as a trader and human (inability to second guess myself).
Trading lesson learnt for this time?
- Trade only short timeframe – Mats for you that means max 2 days. WITH STOP.
- Trade intraday tickvix chart divergences (thanks Inna!)
The tickvix is a cool little indicator showing big market player participation. Lately however it is more like market constipation – with a small buildup (compounding) of crap every day… 0,4% here 0,5% there – oops 1,2% etc. In the end the only cure is a good and wet enema – or E.Coli infection with bloody diarrhea (/ PEE 3).
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