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Week is coming to a close. As expected, tech made its way down the 5 day number-lines and we are seeing alot of increased momentum to the downside there. SMH big volume down day today...SNDK missed on earnings and SMH will prob be gapping down tomorow. Real estate remains the only real pocket of...

Good stuff here guys, I'm liking it alot. Seems like as the timeframe contracts these concepts become more and more important. Daytrading is like swing trading on fast forward...much more easier to get out of flow and perhaps easier to get in flow hmmmm :)

Some interesting insight! I like it :) One thing that has helped me a ton is visualization. At the end of the day I go through my execution and trades and run through what I did wrong and right and visualize how I should have executed in that scenario. If I executed correctly I reinforce it...

Thinkorswim has free prophet charts that have that feature. There are alot of ways to put on that trade, you just have to know what idea you are expressing! Here's a good article on spreading: http://dynamichedge.com/2010/06/29/what-is-spread-trading/

I would bet that most intraday program trading is not momentum based and is betting on convergence. High frequency automated basket pairs is pretty much what most HFT firms are doing or some variation.

I don't trade XLV very often buy I've notice it's been one of the weakest sectors on my 5 day number line for a while. Just looked at the daily chart it does look ugly. You looking for shorts in this space?

Lol it looks like me, you, and Mav are the last ones left in this thread. King pops in every once in a while! Everybody else moved on to the next flavor of the month lol

One thing I've noticed is since I've been doing spread trading exclusively I've been looking at the market from a different lens. It took a while for my brain to start viewing things from a relative value perspective and put direction as an afterthought. Hell Alot of times I could care less...

Ya there is sound, just not the highest quality.

Here's an interesting video I came across. Legendary trader Charles DiFrancesca talking about Spread Trading! http://www.youtube.com/watch?v=QT0cRPCuTbE&feature=relmfu

Also, one thing to note. Copper has made its first monthly Adown since last year...really bad price action last week. Breaking down from the consolidation thats been put in since the beginning of the year.

The market as a whole showed weakness going into the end of last week. We came and retested the Monthly A down in the ES and failed. Also went from the weekly Aup to Adown on friday. As far as short term price action we have some pockets of strength. Real estate, Consumer discreationary, and...

Also, even though psychology is so important it is important to note that it will not make someone who doesn't have edge into a profitable trader. The learning curve to profitable trading has many steps and requires thousands of hours of trading. I think John's post is invaluable to those that...

Great post John! This one is definitely going to be saved ;)

I want to talk about a subject that we haven't touched on alot in this thread. Talking about the psychological aspect of trading. Since trading is a performance based activity I think it is a critical part of applying and executing with ACD. This game is a very honest game...the ultimate...

King where you been? Nice move in AAPL this week 644 to the 600 level. You know that the last things to be taken out in a correction are the stronger names. Weekly Aup to Weekly adown!

When structuring a trade like this you want to be sure that you have two instruments that are at least semi-correlated. Too much correlation and you wont have any widening of the spread. I do something very similar to this but with ETF's that are semi-correlated. And always think about what...

Lots of weakness in the energy space. If we confirm the monthly those would be the place to for some shorts imo. That move in bonds was something else...monday will be the real test since we are at so many key levels at this point and very early in the month!

The 56 was a nightmare to take in the first couple months it was put out. No one knew what the hell would be on the thing and the study guides were lousy for the most part. The newer study guides are alot more helpful and if one studies you should have no problem passing it!

The 56 was just instituted about 6 months ago, the firm I was trading at the time required it. I recently moved firms and they require the 7. The 7 is more useful and you will likely need it somewhere along the line if you work in the industry.