Skf

[monty21]

Quote from AAAintheBeltway:

Is the concept of techincal support even valid for something like the SKF?

No its not

 

[monty21]

Quote from Haroki:

So then what's your view on support/resistance for Dow, S&P, Nasdaq, etc?

Personally, I don't see much of a difference, since they're all just baskets...

Though they are baskets, indexes are much different than ETFs and support/resistance levels are particularly significant, especially for the S&P 500 and DOW. On the Chicago Mercantile Exchange S&P 500 index futures pit, traders watch these levels very closely. If the spread between the cash/futures becomes wide enough the index arbitrages move the entire stock market, at least the large cap stocks. Plus investors watch these levels very closely and speculate in futures trading. They are measurements of sentiment as well.

 

[Eleanor]

Quote from monty21:

No its not

Do you think it's a coincidence that SKF bounced at 100 even? Are you certain you know which is horse and which is cart here?

 

[monty21]

Quote from Eleanor:

Do you think it's a coincidence that SKF bounced at 100 even? Are you certain you know which is horse and which is cart here?

Maybe my charts are wrong, but on what day did SKF bounce @ 100 even? Are you taking about Thursday morning's (March 18th) off the open bounce where it came within $2 from 100? If so, the simple explanation is that the DOW, NASDAQ and S&P's tanked on the open.... and SKF essentially moves inversely to these indexes, thanks to the index arbitrageurs. Do you suggest that SKF found a bottom because there were just simply buyers in SKF or rather that people were selling the sh!t out of S&P futures contracts on the open?

 

[Bolimomo]

Quote from monty21:

Maybe my charts are wrong, but on what day did SKF bounce @ 100 even? Are you taking about Thursday morning's (March 18th) off the open bounce where it came within $2 from 100?
.....

Within $2 from 100? It did trade down to $100. I was watching the pre-market prices. SKF traded to 99+ for a brief moment.

It traded at $100 after the open. But it was a very brief moment.

 

[S2007S]

in on SKF and bought FAZ @ $26.90 a few moments ago.

Looking to jump out at $30+ sometime today, hopefully...

 

[TheAngryHermit]

Quote from Bolimomo:

Within $2 from 100? It did trade down to $100. I was watching the pre-market prices. SKF traded to 99+ for a brief moment.

It traded at $100 after the open. But it was a very brief moment.

No wonder I can't make money trading...I need more indicators! :eek:

 

[Bolimomo]

Quote from TheAngryHermit:

No wonder I can't make money trading...I need more indicators! :eek:

I can upload the simple OHLC line chart if that pleases you. Or even the ticker prints.

You can make yourself more useful by helping with the poster's question instead of taking potshot at other people's post.

 

[TheAngryHermit]

Quote from Bolimomo:

I can upload the simple OHLC line chart if that pleases you. Or even the ticker prints.

You can make yourself more useful by helping with the poster's question instead of taking potshot at other people's post.

You're right, that would be more useful. Unfortunately, I'm not here to be useful.

 

[darwin666]

Quote from AAAintheBeltway:

I think there is a difference. They track the underlying stocks. SKF doesn't. It tracks double the daily inverse percentage change. Plenty of people have shown that the ultra and triple inverse products don't track the underlyings over time.

I guess the other side of the argument would be to say that people trade off the technicals of the SKF,etc and that becomes the tail that wags the underlying dog.

EXACTLY, infact I wonder why SKF is even traded.. there should be no BID ask on it.. just a price which reflects 2X inverse of XLF ( but I have noticed a disconnect as demand supply changes and it leads /lags on the true 2X from time to time )

it always closes close to the 2X inverse percentage of XLF.
hence all technical analysis which is applicable on XLFs etc should not be used on the 2X inverses.