Monday, March 26, 2007

Then bond and stock market inverse relationship showed up again today. Bonds were relatively oversold and vice verse with equities, it just took a catalyst from new home sales for the balancing to take place.

I waited for the reversal, and I cut my profits short. I should have held 1 contract open for my target of 811, but I got spooked from a fake pop up in ZN and the Euro. At least I got a little bit of the wave by shorting YM when 811 was hit on ER.

Market observations:
Before the news even occured there was weakness in YM and strength in the EURO and the bonds were showing support. Even Rick Santelli on CNBC was pesimistic that equities would go up. Out of all the commentators, I happen to like Rick the best, because he knows his stuff when it comes to analyzing the fundamentals and technicals, while the other reports at CNBC seem to just read the headlines and don't seem to be into the game.(I also like mark faber). It's 8:20am my time, and the currencies and bonds have lost steam since 7:30am, and now the stock indices seem to be just chopping around. I'm done for the day.


Gav on 4:14 AM said...

Your posts on intermarkets relationships and Yaeser Anwar's blog inspire me to do more homework.

I start to look into different ways to understand the markets.

Please keep up the good work.


Anonymous said...

Hi, I agree with your favorable comments on Santelli and Faber.

jekadril on 8:09 AM said...


I see that you are using IB and QT. How do you backfill advance/decline chart? Do you have your charts turn on all the time?


HPT on 10:24 AM said...

Thanks Gav. I've been spending a lot of time trying to learn the relationship between the currencies markets, bonds, and stock indices, because I've noticed good pair correlations and inverse pair correlations between all of these markets that help spot key reversals during the trading day.

HPT on 10:29 AM said...

Thanks headlinecharts,
I like how each day of the week you analyze a different market. I was checking out your blog stats last night and thought that your blog tracker was pretty cool. I just found out how to search other blogs linked to mine using, it seems I'm begining to be noticed.

HPT on 10:36 AM said...

Hey jakdril,
Unfortunately, I don't think IB can backfill the NYSE A/D data, as well as the VIX & NYSE volume.(this goes for NQ and AMEX exchange data too, because this data most be downloaded in realtime, at least that's my guess). To get the data you have to have the charts in your QT portfolio or have the charts open. I have the charts in my portfolio and watch nyse a/d and nasdaq a/d charts intraday.

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