Tag Archives: Futures

Where the S&P 500 is going.

Quick overview. S&P 500 Cash cannot be traded it is a calculation of the stocks in the S&P 500 weighted based on Market Capitalization. You can see the changes in the companies listed here (yes I linked to wikipedia, something I am not proud of). Many people use the S&P 500 Cash against S&P 500 futures.  What generallyContinue Reading

Thoughts on the Nanex HFT in futures report.

Nanex came out with their report of a report on futures, lets call it a derivative. The original report is here, I only skimmed it but came away with harmless conclusions and nothing that a trader would not do themselves. I want to say that I am not a HFT apologist but I will letContinue Reading

3 Principles of the diligent contrarians

As we approach new highs in markets and stocks (I started writing this a couple weeks ago) and as people are ever more vocal it is important to talk about contrarianism (that is a real word, Bing it).  Or maybe it is just the season or astrology or whatever.  I wrote the difference between aContinue Reading

RE: THE MOST COMMON ERROR IN STOCK MARKET RESEARCH

Jeff Miller of Dash of Insight wrote a brilliant post on common research mistakes. It can be found here. He breaks it down into two things:  Selecting the Right Data and Comparison. Selecting the Right Data.  As the saying goes, if you torture the data for long enough it will tell you anything.  There is so muchContinue Reading

What if love is not enough?

Have you ever loved something so much and it just didn’t work out?  Maybe it is a sports team, an animal, or maybe you developed an allergy to cheese.  Whatever it is, you guys aren’t together anymore. Price action is the same way.  No matter how much you love a market or stock is it does notContinue Reading

RE: AN ODE TO THE SHORT-TERM TRADER

Over the weekend a post came up in my feed a lot. AN ODE TO THE SHORT-TERM TRADER from zenpenny.com. I did not exactly read it with an open mind but it is one of the better ones.  I thought it was going to be another post telling people what they can and cannot do.Continue Reading

CME changes settlement hours for Equity Indexes Starting Nov 18th.

CME changed the settlement from 3:15pm CT to 5pm CT, maintaining the same price limits. The market will continue to be closed from 3:15 to 3:30 and 4:15pm CT to 5pm CT. From CME Group Normal “non-holiday” Trading Hours: Trade dates will begin at 17:00 CT/18:00 ET (vs. the current 15:30 CT/16:30 ET on Monday-Thursday)Continue Reading

Causation and correlation 101

It appears there a gaping hole of disconnect between causation and correlation.  Correlation says that two things move along in equal or almost equal ways or opposite ways.  Causation says that one thing affects the movement of another. Huge difference. Lets talk about two recent examples: The market has been up X% on Tuesday’s after X event occurred.Continue Reading

Email: What is the most I should lose in a day?

This is a pretty common question.  Most people want a clear and simple equation.  But there isn’t one.  This is something that you need to answer for yourself.  Answering the following questions should help clear it up: What am I capable of making in a day? On your up days if you are making netContinue Reading

Patience and “The Goal” Parable

I was talking to a mentor of mine, whom I will formally introduce soon.  He asked me to read something.  It was an adaptation of a parable about patience and the goal.  It went something like this: A guy goes to a trading mentor and says he has 3 days to learn to trade. Guy:Continue Reading

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