Spydertrader's Jack Hershey Futures Trading Journal

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Pepe,

Thought this quote from Jack might give a bit of clarification to your observations. - EZ

The common ingrediate we need to see is the advent of trends at the end of mud or hitches. This is simply the chat on stretch and squeese. when either occurs you have the signal for entry and taking the ride. Smart money goes first. THAT IS THE KEY RULE. you never see me type in caps. So give this great value. If cash goes first,then what yopuare seeing is smart money NOT going and the deal at hand is going to be a failure to BO. BO means break out.
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A couple of trades during my jury duty lunch break. I felt like doing something I enjoy, and I was a little itchy to trade ...

In the subsequent messages I'll post links to snapshots of:
- today's order status: +1.25 for the day
- 1st trade's entry chart: sto
- 1st trade's closing chart: btc -0.50
- 2nd trade's entry chart: bto
- 2nd trade's closing chart: stc +1.75

Those shots were snapped a few seconds after placing my orders.

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1621860>
 

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Quote from Pepe:

Hi Pr0,

The only thing I have is my observations of INDU and YM, and what I can say is that when YM moves, ES usually moves along some (mili)seconds after. I didn’t noticed any different ES behavior when INDU moved and YM not.

The normal and most often behavior with this two is that YM takes the lead by moving first and then INDU nullifies the offset (giving a signal). Sometimes, YM moves in one direction and INDU moves in the opposite direction (giving also a signal), other times INDU moves, YM stands still and INDU returns to their previous value (another signal).

By the nature of this tool, of course these are all valid signals. The question here is in what context are these signals meaningful?

For me, I use STR/SQU in high volatile moments and I’m observing it when a 2-pair occurs, at these moments I want to see YM moving first.

But, as with everything, there are no absolut certains and I may be wrong doing what I'm doing, if that's the case and someone has a different view of the situation please post it and let's discuss it.

Best Regards,
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it's funny, I value its opposite signal more.

let's say both cash and future are moving up, future initiated and moves at faster speed, it drags cash along ( +2 ); soon cash catch up, in sync with future (0), then future slows down, shows sign of weakening, but cash still move ahead ( -2 ).

when I see this kind of -2, I'll at least prepare for possible change in the price movement. because I see a sentiment change in future trader.

But in case of +2, I don't see it will help much, since we would know future is moving up from price action and confirmed by prv. we don't need cash to come along as confirmation IF one believes "YM leads".

BR.
Eric
 
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