Short Term Trading Member Forum

[willieintheno]

techcharter..about ABX Index ???


Did not know what it was and still having trouble gauging it's usefullness.

Found this though...

http://www.portfolio.com/views/blogs/market-movers/2007/06/21/how-the-subprime-abxhe-index-works


Key phrase that caught my eye...

"What it all adds up to is something which is not necessarily representative of anything much at all. But it's the best we've got, so it's what people use."

The article was written on June 21, 2007 when the ABX had fallen to a (then new all time low.

Yet looking at the charts. All the major indexes were up 1 month after.

How does the ABX factor into your trading strategy?

Thanks

Willie