Which one leads, index or future?

Wow! Didn't expect I can get so much info & advices. I was called out today to help my uncle moving his stuff all day long & was just back after 9:00PM.

Thanks for all the replies and I think I need some time to digest them, but I bet some of them will be very helpful for me. (Especailly Grob's)
 
Quote from etherboy:

I'm new to futures, and just started trading.
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etherboy,

If, they (prices) are going up - buy - place a protective stop and wait a little while.

If, they are going down - sell - place a protective stop and wait a little while.

If you find yourself in a profitable position (and didn't get stopped out), trail your stop into a profitable risk free trade and wait and see what the market will give you or take profits at or near prior Support/Resistance. (S or R - depending on whether you are long or short)

Keep it simple and trade small - keep in mind the prevailing daily trend (if there is one) - always honor your stops (never ride an unprofitable position) - through time and experience you will better understand where to place stops - for now just keep them reasonably close to your entries.

Sometimes you will get stopped out at the high of move or low of move - that's just part of trading - move on and seek the next opportunity. (riding an unprofitable position will rob you from being able to exploit opportunities)

Be aware of your emotions whether in an unprofitable position or profitable. Over time, working a plan, emotions should subside. (somewhat :D)

It's just a job.

Interesting topic and if you wish to attempt to pursue exploiting differences between cash and futures, then have at it. Just do it with some solid trading rules.

Best regards,

plumlazy
 
Quote from Grob109:

What we want to see is two markets and what is leading what.

It is very logical to want to see the rich smart guys making their moves all the time. Once you track this, you are in a very good place to see money piling up in your account.

We know the cash market is a continually adjusted weighted average of a group of stocks that tipify how the market and eonomy are going along.

The commodities futures index is a device used by producers and commercials to assure that they can plan and have business operating profits.

Because this stuff is dynamic others of us, called speculators, can continually gleen profitsout of this vast set of enterprises operating for other worldly purposes.

Some of us a called smart money. Others are called angry losers.


Do the stuff below on Tuesday am.

On qcharts make a graph of INDU using bar chart indications.

We are going to add ym04h to this chart. It will be a one period MA of price. To do this go to studies and bring down the menu. Select Overlay Expressions and activate it by clicking on Add...

Fill in the symbol for ym04H by typing YM04H. Go to the vertical scale method. Select Match Vertical Ranges.

When the markets are running you will have the two graphs set up with the same vertical magnitudes. This throws out the offset of the two and makes the neutral value (like in the attachment below it is about 19 to 21).

What you see are bars for the INDU and a line threading along that is a 1 period MA of YM04H.

For making money, you want to trade with the smart money. You must do trades to acheive this. You can see that the dashed line is on one side fo the cash INDU most of the time. The side it is on is the trend to be following.

As I mentor, the person says: "it crossed from long to short (or vice versa.)" Then he judged whether or not the new trend is going to stick. You can see from the attachment that that part is easy. I marked about 25 easy trade signals. At each time, you mosey over to IB and enter a trade as indicated. If you screw it up do a wash trade for pratice.

For trend fader, do not attempt any of this stuff. You are too angry to think clearly.
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I set this up today and monitored it all day. I really couldnt detect any lead to it. Its easy to see the turns after the fact but not as they happen. Can you give me another hint.
 
Quote from easyrider:

I set this up today and monitored it all day. I really couldnt detect any lead to it. Its easy to see the turns after the fact but not as they happen. Can you give me another hint.
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Easyrider,

This is normal with Jack's stuff (grob as of late). Happens to many people. I'm sure he'll come back with some more.

Try do do your own thinking though. This also takes some time, but at least you may get somewhere.

Good luck to you,

nononsense
 
no

Ive always done my own thinking but I love learning something new and will run down many blind alleys in pursuit of anything that will take my trading up another notch. I aint givin up on Jack just yet.
 
Quote from kowboy:

Is there software available that plots and shows the difference between the futures and the cash market in real time?
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I am not a huckster for eSignal, but this can be easily plotted using eSignal advanced charts.

I have been using this invaluable lesson from Jack for awhile and he has been telling people on ET about this for quite some time. I am glad that everyone is finally catching on.

In eSignal, I just enter into an advanced chart:

$indu[space]-YM h4 (or $compq[space] -nq h4)

and set it as a 1 minute fractal.

The resulting line shows, in real time, the stretch or squeeze occuring as a spike up or a spike down. Visually, this method is not as easy as Jack's setup in Qcharts, as you have to take note of the values of the stretch and the squeez to determine what side of the market to be on.
I also run a 10 period sma to help show me the direction the offset value may be heading over time. Sometimes this helps anticipate a larger trend beginning.

One question though....Jack, in using your log (which I have not implemented yet in my daily trading), I am confused as to what the value "Net INDU" is supposed to be. Is this just the value of the offset? Also, for each trade or entry in the log, wouldn't the "Squ", "Neut", and "STR" values be relatively equal in each entry (over a given day of course as these values would potentially vary each day)?
 
Quote from demonet:

I am not a huckster for eSignal, but this can be easily plotted using eSignal advanced charts.]

Have you tried doing this with an overlay in a standard chart? I have been working on this method for a few days along side my normal method but cant seem to get it. I can see the squeese, nuetral and stretch areas now but so far I see no forecasting value to it. Jack says that keeping that log for two weeks will help but like you I cannot quite understand how to keep that log. I have never been able to come up with a way to scalp but am always interested in trying something new.
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