Senario: You are a day trader. You have room on your monitor to watch 4 and only 4 markets, preferably ones that influence your target. What do you watch?
my current preferences
1. Target Stock
2. VIX
3. USD
4. Target Stock sector ETF
any better ideas
The VIX fear index has traded down
from its opening level in 18 out of the past 20 sessions.
As far as I can tell, this short term pattern of extreme optimism has never occurred before.
Any comments?
The VIX (fear indicator) has traded DOWN from its opening level for 13 straight days. I'll bet it's been a while since we've seen a streak that long on the VIX...
seems excessive to me.
Ok, I screwed up.
But my point was, if he's wants to go long there are a lot more efficient ways than tying up $75,000.
Buying a call or ES future would take much less bankroll
the market is WAY too oversold to be going short today imho.
Also, instead of tying up $75,000 of capital, you could have bought puts or just shorted ES futures and freed up $65,000 or so for other investments.
rough day today
America's 2 largest banks down each down 14% today.
Bank index hit lowest level EVER
Dow Jones hit lowest level since 2002
Inflation up huge amount in January
Crude oil up 12%
Well be navigating choppy waters for the next few hours with lots of breaking news.
12pm Obama speaks
1pm Bernanke speaks
2pm Fed minutes released.
I personally will wait until about 3pm to see how this all unfolds before making any trades.
best of luck
CNBC commentators say that right now stock prices are corralating with the US dollar.
If the dollar goes up, so do stocks
If the dollar goes down, stocks fall.