ES Journal - 2013

[pinkman]

Do any of you look at intermarket divergences?

Say the ES is making lower lows, but the NQ is holding steady and making higher lows.

I think in that situation, most people would look at buying the ES. But why, though? (assuming i'm right)
Why not short the NQ based on the fact that the ES is going down instead?
I can't see a logical method when watching these divergences.

 

[horton]

Look at the Banks. If they are with you then the ES should follow. If they are not then you could get get stuck while NQ goes much further adjusted for normal range. Same applies to TF in my experience.

 

[horton]

Right now the SOX is on a tear while the BKX is sold into the Bond Close. Completely opposite moves. They should starting doing the same thing, whatever that is, after the Bond Close.

 

[RichardRimes]

Quote from pinkman:

Do any of you look at intermarket divergences?

Say the ES is making lower lows, but the NQ is holding steady and making higher lows.

I think in that situation, most people would look at buying the ES. But why, though? (assuming i'm right)
Why not short the NQ based on the fact that the ES is going down instead?
I can't see a logical method when watching these divergences.

I can't trade the YM or the NQ...just don't have a good feel for it. I know some people do trade NQ, ES as a pair trade sometimes. I've tried but not really well. While I do note the divergence ex: a strongly lower NQ, slightly higher YM ..then the ES is more likely to be volatile, a day like today they are pretty much in concert so I don't see ES as going down all that much. It would be interesting to see if anyone does trade divergences successfully and HOW they do it.

 

[horton]

Considering long NQ if the algo gives up at 52.25. But I hesitate to do it before the Bond Close. The cash order flow has turned up again.

 

[Trader.Fighter]

More long average ups added to position.

 

[CahaTrader]

Quote from Trader.Fighter:

More long average ups added to position.

Think we stop at 1656 gap or go for the full nine yards and close 1680 gap sometime this week or next?

 

[TskTsk]

Quote from pinkman:

Do any of you look at intermarket divergences?

Say the ES is making lower lows, but the NQ is holding steady and making higher lows.

I think in that situation, most people would look at buying the ES. But why, though? (assuming i'm right)
Why not short the NQ based on the fact that the ES is going down instead?
I can't see a logical method when watching these divergences.

Cause traditionally NQ leads in bull markets and ES leads in bear markets. If NQ is still holding up that would be considered a general long signal accross markets...at least that's my understanding, but I may be wrong

 

[CahaTrader]

Quote from TskTsk:

Cause traditionally NQ leads in bull markets and ES leads in bear markets. If NQ is still holding up that would be considered a general long signal accross markets...at least that's my understanding, but I may be wrong

To add to the conversation here, NQ is generally where risk money goes in bull markets, since many tech company startups are the heart of small business, and their earnings swing the greatest. SPX is full of bell weathers, and don't move as much. All large caps.

 

[horton]

Look at AAPL. Algos still have a VWAP agenda.