TinGull

Here's a post for MrPaul who wanted me to put up my value area screenshots. I use Investor R/T and their MP charting package. My values will differe a bit from places like mypivots.com for some reason that I'm not sure of. It may be because for instance, the POC doesn't land on highest or lowest TPO, it lands on the last TPO that was traded as long as it has the most TPO's for the session. If there are multiple TPO's at that time level, then the last one traded gets the POC. The value area is 70% of that level. Here are some screenshots of the YM. I'll be taking some shots of the ER2 as well for the russell traders.

Also to take a quick note of, is the MA20...its just hugging that and failing to rally off of it as it has in the past. While it's mildly bullish that it hasn't broken it, it's mildly bearish that it hasn't rallied....ugh...more of the same I guess

Soul, while that is true, the Russell and the nasdaq have failed to make news along with the SPX and DOW...that makes me nervous. IF the nasdaq can breach and hold above 2470, I'll feel much more bullish in the intermediate term. Premarket, it's looking like a blast up, but the past few days have seen the highs of the day reached early on, and we drifted lower. While on the DOW I do have a bullish bias, I'm wayyyy cautious because of these things. Yes, it'll make for an interesting week

A lot of times people will talk about the Nasdaq leading the broad market, or the Russell2000 leading the broad market. Here's an interesting scenario for today. The YM is above POC from Friday and has traded up to VAH premarket and bounced down. The ER2 has traded up to the POC from Friday (it remains below POC) and bounced down. The NQ remains right around POC as of now, post news. Is there anything to glean from this? Usually when we open up below POC, I'm having a little bit of a bearish tinge to my bias, and above POC is bullish. Now, we're inside of value on ALL of them, so we may just have an inside day, but definitely something worth thinking about. If the futures of the markets who are believed to lead the broad market are opening up at or below their POC, should we have a negative tinge to the market as a whole? Let's find out

Wow...a bit over my head right now...he talks a lot about corn and ag/energy commodities. Think they may have a different mindset than index futures traders? I really have no idea, as that spread analysis seems a bit intense for my type of coffee drinking.

I completely agree, as will everyone else here, in your R/R. I, however, have a different question You mentioned in a post in the Forex Room about using investor r/t and the VB indicator. This is how I trade as well, working mainly off of market profile levels and pivot points. Would you mind sharing how you're using IRT and the VB indicator? I'd love to see some charts too!! THanks Walter, Chris

Walter, please post your approach with investorrt and your VB techniques, as this is how I trade the minis too

Very interesting...I can completely understand the wider spread thing, but as far as why some traders would trade the further contract is beyond me. Doesn't make sense because of the lack of liquidity that these "big boys" would be needing, right? Also, what was the article you were reading?

Stevie's eh? Tell her she's gotta go to Supremes right around the corner! Much tastier IMO

Ah yes, Office Space...one of the all time greats I used to watch Boiler Room over and over; loved that film. I haven't really seen many british films, though I may have to put em up on netflix and see some! BTW, texxas, you're in Boston? I used to live in backbay on the corner of mass ave and boylston...right at Berklee...cool to know yet another northeasterner.

Yea, and as you said, torero, talking in the chat room during trading helps A LOT to keep your mind where it needs to be. I love being able to have amazing folks to talk with while in a trade. Helps me focus on things I might not otherwise see.

I've got no clue how the bond market works, but when you're looking at quotes for the SPX, you're only seeing pit quotes. Your electronic orders get routed to a market maker most with most brokerage houses and then he works his magic on the floor.

Just thought I'd start a fun thread to learn more about fun movies! I'm about to watch Mongolian Ping Pong, which my sister said is awesome, and Genghis Blues, about a blues guy who dedicates his life to the art of Tuvan throat singing. For what I saw recently... Lots of documentaries. Ones about Wal Mart (The High Cost of Low Prices) and their passion to ruin the world, "I Know I'm Not Alone" by Michael Franti (totally awesome musician. Tells his story of travelling through Iraq and Isreal singing and playing the guitar for people to learn about their thoughts on the war) and Enron: The Smartest Guys in the Room. That one was real fun 'cause of their trading rooms and such. So...what are some good flix you folks have seen lately?

Yea. Amazing, though, how it followed those levels from a few days ago to a T, eh?

I'm not aware of the differences in writing them...just aware of the differences between Euro style and american style as far as expirations and things go. isoroi, as far as implied volatility...thats the name of the game when you're selling options. If you sell something that has no volatility...then there's nothing to decay, really. You want something that has the premium pumped up SO much that there's little else for it to do other than dwindle away. Say you sold a spread with very little IV, you could actually lose money on the options even if the underlying was to go in your favor. Thats because the IV is getting pumped into your options, making you lose money on the ones you sold, while you gain a minor amount in the ones you bought against the sold ones. I hope that makes sense....let me know if you've got other questions.

Thanks...just noticed that those VA levels I had aren't right...I never opened up my MP chart for it to refresh, so those levels were from the 11th...oops!

Here's a great chart from today! Many killer moves in ER2, almost all of them just perfection. The total made by the moves was : 96 ticks available following Market Profile and the breakdown of bid/ask. Not too shabby!! 802.4-805 for the first long 803-805 for second move 803 to 805 for 3rd 802.6-799.6 for the 4th move

Thanks! Let me know if you've got other Qs and I'll do my best to help

Sorry I didn't see this one!! When you say "married puts and calls" are you talking about buying both of them for one as a hedge? I mean...that is a strategy but not a very lucrative one from my standpoint. I think, the best option strategy is selling spreads. For instance, in an uptrend where you might normally buy a call outright...give yourself a little safety and sell a put spread. That way, you've got downside protection and an upside potential as well. The upside is capped, however, but the downside isn't gonna hurt as bad if the whole thing breaks the uptrend line. For instance...one of my horrific trades in October...I had some calls that I had sold on SPX and RUT. Market was awfully overbought, and I figured it was time for it to rest. Well...this was my biggest lesson in trading...trade what you see, not what you think. So...I sold some bear call spreads and then it just went up, and up, and up....and up some more. Intense to see money drained from your account. BUT...had I just bought puts on that thinking it was going to go down...I'd be out much more money than I was. For more reading on option spreads, check out redoption.com and optionplanet.com. Both of those have TONS of information for you to dive into. I figure that once I get a sufficient bounty from mini trading, I'll go to selling way far out of the money spreads so I only really trade once or twice a month. It'll give me a steady monthly income without having to be at the computer all day long.

HA! Yea, literally had bread in the making...

Yup! Baking bread is my big thing. Been baking for years now, and today FINALLY had my very first nice loaf of true sourdough bake off perfectly. Took almost a week to make that one loaf...but it's so worth it

Another thing I thought of that I learned...is to have another hobby. For me, I need to have something else to take my mind off of trading sometimes. I have been so enveloped by this for the past year, that it's become my only thing in life. I've found that with having something else to occupy me, it leaves me refreshed.

Also, in case you weren't aware, we meet every day here in the chat room to trade futures. Most play the YM, 'cept the brave few like torero and MrPaul who trade Er2. Hope to see ya there!

Yes, another great one. That book and John Carter's "Mastering the Trade" have been the most instrumental in getting me to where I want to be.

This is why Market Profile is great. Notice how there was a break out over the POC today, and then a retracement to it, and then BAM! It took off for many many points. I didn't get in on the POC, though it did couple with a signal for entry with my trading plan....I just wasn't focused at the time. Pretty chart