Hubert Senters here.
Let’s take a look at a theory or framework fundamentals that you should be good at and always be thinking about them regardless of what you trade so I tried a lot of futures I trade a lot of stocks. And the first thing I want to know is which direction is the market headed, who is the lead and who is the lag so there’s four index futures.
There’s the S&P. This is the S&P. And what we’re looking for here is it above or below the cloud obviously, everything is selling off so everything is below the cloud. But when I write this I go okay is the S&P stronger or weaker than the Dow?
And clearly you can see that the S&P is going down faster than the Dow so I said okay. The S&P is the lag in its effect. Now, the four horsemen or the four sisters that you want to pay attention to S&P, the Dow the Nasdaq and then you want to take a look at the Russell. So in this case scenario the Russell was the early warning mechanism to tell you and it was also the lead.
So in this case we have the Russell leading the down move and we have the Dow lagging and the other two the S&P and the Nasdaq are caught in the middle. And you always have a lead and you always have a lag. Always pay attention. Always keep it in the back of your mind and you’ll know how to properly trade those things and you’ll know when the other one or two are going to pull down the other one or two.
TradeThirsty is having an event this weekend. They have I believe three or four speakers and will scroll down through them. Scott, Brian and Matt and Steve. You can read about this. I’ll hyperlink you to the page. You can sign up there, CLAIM MY SPOT NOW, that happens tomorrow at 9AMEST-1PM EST. I will hyperlink you over the page. Click that big red button. Sign up for the webinar. All you got to do is show up.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
