for daytrading...which is most important to monitor for market movement?

For overall market action, I find put/call ratios extremely important.

More often than not a reversal/bottom can be verified through these ratios.

Use them in conjunction with overall market action, especially end of day data.

Good Luck!
 
Quote from increasenow:

YEA...huge divergence today between GS and SPX...why is that?...what is it about GS vs. SPX...please explain...thanks!
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for daytrading...which is most important to monitor for market movement?




to monitor market movement watch for GS.
GS gives a rough idea about the S&P... ...
 
Quote from increasenow:

Indexes(SPX,NDX,DJI,RUT)
Oil
Euro
10 Year Note
Yen
...power stocks such as...MSFT,AAPL,XOM,GE etc...
...power ETF's such as XLF (financials)
...what is in your daytrade 'playbook'...thanks in advance...
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Just keep things simple and monitor the S&P. By keeping a one-minute chart of the S&P open on your desktop you'll see all you need to know when considering a trade, which is overall market direction.

IMHO, anything else is overly complex.

There is a tendancy in this business to make things a lot more complicated than they need to be in order to be a successful trader.

By and large, most experienced traders will tell you that as their career progressed, their indicators and setups got less complicated, not more.
 
Quote from increasenow:

Indexes(SPX,NDX,DJI,RUT)
Oil
Euro
10 Year Note
Yen
...power stocks such as...MSFT,AAPL,XOM,GE etc...
...power ETF's such as XLF (financials)
...what is in your daytrade 'playbook'...thanks in advance...
More...

Just indexes (Dow, Nasd, SP500) for me.

Other info is not really needed for my system.
 
Quote from johnston:

1. when there is prem/disc cant u arb it?
2. pivot points are just toys arent they?
3. i've seen TICK mentioned in several places, but it's difficult to find out more about it. (i.e. through google) what is it and where do i get it?
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1. That is what the traders on the CME are doing. When they see a Premium, they sell futures, if they can't buy them back cheaper, they arb by buying baskets of stocks or the complete S&P500. This is part of market mechanics and program trading.

2. Pivot points tend to be "self fulfillijng prophecies" quite often, because the larger floor traders are fully aware of them. Watch a while, and you'll see what I mean. Of course, when we have drastic moves up and down, the next day's pivots might be too far out of range to be of much help. Most days you'll see a pattern. Today for example, as of now, R1 is 1506, high for the day is 1505.25. Low for today is 1485.50, S1 is 1485.

3. TICK is simply the net number of upticks vs. downticks. At around 800 either way, start looking for a short term market reversal.

All the best,

Don
 
Quote from Chartiste:

Agree with all except avoiding the "stock of the day." When you get married to a small group of stocks, there are days when they just chop back and forth. Meanwhile, you have a huge moving/high volume stock like RIGL yesterday, which offered great profit potential, while essentially obeying the technicals (MAs, Fibs, Stochastics etc.)
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There is nothing wrong with picking a "wild card" when your stocks are idle. I just don't recommend that for newer traders.

Don
 
Quote from increasenow:

great points...where can you find free prem numbers...quotes...?
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Feel free to go to www.stocktrading.com/Tradinginfo.htm to see the FV numbers and pivots and a bunch of other stuff that I post up pre-market every day (up/downgrades, earnings, and some internal Bright Trading stuff which you can ignore, LOL).

SPX + FV = Parity. Futures minus parity = PREM or DISC.

All the best, sorry for the 3 seperate responses.

Don
 
Quote from lindq:

Just keep things simple and monitor the S&P. By keeping a one-minute chart of the S&P open on your desktop you'll see all you need to know when considering a trade, which is overall market direction.

IMHO, anything else is overly complex.

There is a tendancy in this business to make things a lot more complicated than they need to be in order to be a successful trader.

By and large, most experienced traders will tell you that as their career progressed, their indicators and setups got less complicated, not more.
More...

I tend to agree, but I also think that after a few years "in the saddle" that traders can simply glance a few things to get an instant feel for what is happening, without the "step by step" of each indicator.

I like keeping the squawk box on from the S&P pit, they give a lot ot additonal information which I find helpful. My brother and I go nuts when it's not on, LOL.

Don
 
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