The ACD Method

Wow. I was aware of the stuff Mav was just talking about, but I definitely feel like I've been schooled. Strong words.In a good way. I can attest to the noise in TBT, having been in it awhile back when a well known bond guru was pounding the table saying interest rates were going to rise soon, and that we should all head for the hills. Then they went from three to one and a half. And I agree that yields are having a stealth move. It's just that pundits have been saying yields are going up since like 1985. So no one believes it anymore. All the more reason to like the trade. Also, look at the recent action. Stocks went down, Bonds held down. Very unusual. It may also explain the quizzical weakness in the dollar, despite the election. We'll see.
 
When I was a kid, no one talked about the stock market. There was no CNBC, no index futures, and like two mutual funds. And there was an ongoing bear market that lasted for years and years. Now we have the opposite. I wonder if, if we do stay flat for years to come, do we get back to something like that? It seems preposterous, but a flat to down market with little vol might do it. Short a mutual fund company that just does equities? I remember when bonds were 15% and that's what people were talking about. And inflation.
 
Pretty interesting action in the Russell 2000 etf (TNA)...trades completely below the rolling 3-day pivot range for 8 straight days....climactic right?

Opens below it again today, rallies alllllll the way through the top of the range....okay a short term bottom must be in and a multi-day rally is here right?

Wrong. Reverses course and sells alllll the way back down to the bottom of the range in a just a couple of hours.

Looks like we are no longer in "buy-any-dip" mode for the time being.
 
Cswim63 said:
When I was a kid, no one talked about the stock market. There was no CNBC, no index futures, and like two mutual funds. And there was an ongoing bear market that lasted for years and years. Now we have the opposite. I wonder if, if we do stay flat for years to come, do we get back to something like that?....
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You make an excellent point here. Stock market performance used to be dependent upon performance of the economy, today the economy is dependent upon the performance of the stock market. If you watch CNBC premarket, you cannot help but have a bullish bias with all of their pom-pom waving and light green sector grids that they show.

I've often wondered if all of the big investment banks could survive another bear market; I know for a fact the numerous state pension funds cannot. For example, NJ penciled in a 9.75% annual return for the S&P500 in order to justify not making adequate contributions to it for years...it is a statistical certainty that they will not be able to meet their obligations if another 2008 hit. Anything less than 9.75% per annum and they start having problems. Janet Yellen's comment last month that "there could be a scenario where the Fed buys stocks" makes sense when put in that context.
 
Maverick74 said:
Sure, prop firms this is all they do. They collect liquidity from the spreads and the exchange rebates. But the trade itself in my view is more of a long term macro trade. It usually moves pretty slow and it's pretty boring so not sure why you want to daytrade it. Prop firms are usually just trying to monetize liquidity.
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Hi,

"Prop firms are usually just trying to monetize liquidity.Prop firms are usually just trying to monetize liquidity."

Do you know of any prop that will take a deposit, and enable a "trader" to gain any different leverage than what I have with TOS ?
 
trilogic said:
Hi,

"Prop firms are usually just trying to monetize liquidity.Prop firms are usually just trying to monetize liquidity."

Do you know of any prop that will take a deposit, and enable a "trader" to gain any different leverage than what I have with TOS ?
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Trading what products?
 
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