Location: Madison, AL 35758
Which market internals do you use?
For the high volatility market open trades, the stocks are often on their own page, and there is no need to check what the market is dong (unless its moves are giants that will swamp everything).
But as you likely know, later in the day, and earlier for stocks not on their own page, it is prudent to align with what the internals say the market is going to do. And of course, internals also help in trading the index futures.
Another thing that helped me years ago was to compare the four index futures in two timeframes. (See http://www.visualtrader.com/forum/thread-view.asp?threadid=356&posts=22) What was looked for was the usual congruence, with special attention to which index lead moves on a particular day. This was later changed over to just using the ultra longs and shorts (ETFs). An old trading buddy and I use to scalp the ETFs when nothing else was happening. Prior to that, back when the index futures were used, they were just to keep track of where the markets were going as an aid to trading stocks.
I am sure that there are many more talented index futures (or the related ETFs) traders that have techniques much better than what I use to use. Perhaps you are one of them. If so, please take no offense.
See the attached (today’s) chat extract in MS word format.
Attached file : 101101 Chat ExtractFor Today (in word format).doc (30KB - 594 downloads)