While that's a pretty solid indicator, it's not nearly as telling as the VIX with a -0.783 correlation to the SPY.
As a trader, we can leverage this knowledge to make SMARTER DECISIONS.
That's what I want to focus on today - how we can use this to our advantage.
It's not enough to say that the Dow (DIA) and S&P 500 (SPY) should trade the same as the Nasdaq 100 (QQQ).
Because guess what...that's not always true!
Just look at how different the IWM and QQQ traded in the last month.
Correlations work over time but they can fail for periods, especially when there's outside intervention.
That's why putting them into context is just as important.
Let's walk through how to do that with today's market and create trade ideas for the coming weeks.
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