Also, watch the EUR/AUD pair. This pair has been a great tell for stock market weakness. It tends to strengthen and breakout ahead of equity market corrections. We bounced off the monthly A down and broke out today but like the others, the real levels to watch will be March.
The ACD Method
- Thread starter sbrowne126
- Start date
Good observation. I noted it too around 2 months ago.
Good to know that on many issues regarding the markets I think like you, but you definitely are able to express things more clearly and concisely. I hope with more experience, I will also be able to do that.
Edit: Couple years ago when I was very new, I had observed a correlation/causation between GBPUSD london morning move with early morning move of a basket of Asian equity indices. The backtesting in excel was pretty intensive and unfortunately I could check it only for 2 yrs as I was limited by data - however returns were fantastic at that point.
Now more experienced, my feeling is that correlation was primarily caused due to highly correlated, continued and sustained risk-on risk-off sentiment prevalent in global markets in 2008-09 period. Not sure if the strategy will work yet. But now I have moved on to single market strategies which are much easier to backtest and have a sounder theoretical rationale rather than multi-market correlation/causation kind of strategies which could be a lot of data fitting at times.
Trader13 posted this video on another thread and I thought I would re-post it here. Great interview where Natenburg discusses how professionals view the market in terms of understanding relationships and not direction.
https://www.tastytrade.com/#/videos/20111206-int-snatenberg
https://www.tastytrade.com/#/videos/20111206-int-snatenberg
I would suggest looking at the interview with Tim Night especially part 1. This is what I have been trying to articulate all along. Great job by Tom Sosnoff.
https://www.tastytrade.com/#/shows/get-tasted-interviews
Quote from amsterdam:
This forum has been awfully quiet as of late....
maybe its due to all this volatility in the afternoon....it's got all the traders busy
I can keep posting all day but it seems like I'm the only one. At some point people are going to get sick of me posting every thought in my head. I'm trying to post less and only highlight some of the more important stuff I see. People were complaining for awhile that the thread was moving too fast. LOL.
We use to have 10 to 20 guys on here. Not sure where they all went. I'm kind of use to it though. Most people don't make money trading. They stop by because it's a new flavor and they think it has all the answers they have been looking for. Once they realize it doesn't, they move on.