Sunday, June 2, 2013
"Time Out Ref! I Need to Make A Few Substitutions"
After a couple days of trading my 4 Week TSI/200 ema Study I came to the realization that mixing ticker symbols of stocks with ticker symbols of futures was just way too complicated and totally unnecessary for the purposes of my study.
Stocks trade 6.5 hours per day in their regular NYSE session, yet futures trade on nearly a 24 hour basis and begin "the next day's opening session" quite literally an hour or so after the NYSE closes. Stocks trade, for the typical investor, in terms of cash and futures always trade in terms of margin per contract with an additional margin requirement when the position is held overnight.
This is apples to oranges, not apples to apples.
So to remedy this I have substituted each futures symbol with a closely related ETF and am going to call it good. Now we will be looking at 10 issues that close trade simultaneously at 4 pm est and resume trade the following morning at 9:30 am est. That's apples to apples.
The Trade Score Card and the current charts have been updated to reflect the substitutions as follows:
OIL = /CL (Crude Oil)
UUP = /DX (US Dollar Index)
SPY = /ES (E-mini S&P 500 Index)
GLD = /GC (Gold Futures)
TLO = /ZN (Treasury Notes)
If I can add some feature or tweak to this presentation that will make it either easier for you to use or more informative in some regard I invite you to write me your suggestions!
Have a great week,