Replies to post #77008 on Traders Cooperative

[royg1927]

i am assuming point 3 is where it moves with the index.

Doubtful assumption. I'm more in the camp of studying each issue's own recent developing technical picture.

Sure, when trading SPY and maybe QQQ, by definition you are moving with the index. Less so with the small cap Russell stuff.

My very good friend pstuartb makes this point in an earlier post.

As a generality, if I have one, I am interested in an issue's (stock or ETF) recent (maybe weeks) performance relative to SP500 and/or Dow30. If it (my candidate) has been advancing noticably slower than SPX, say, recently during a period of general market strength, and SPX gives signs of topping, then my candidate becomes a stronger candidate for southbound and me loading puts.

That's just the point pstuartb was making earlier with regard to IWM.

So, heck, if Paul says so, then I was correct to try IWM puts. But wait, intraday on the last session of an expiration period is its own thingy, and such generalities can be very suspect.

Well, there is an hour left. Let's see if there is anything interesting beconing.

[royg1927]

dotnet, hi again

point 3 is the one I was missing

Maybe. Maybe not. I don't know much if anything about your charts/indicator technical ability.

The REAL IMPORTANT THING was not a separate point at all, but imbeded in point 5:

"traders who can correctly call the stock movement direction on very short time spans"

We rarely get into the details of technical analysis. Talk to me about specifics of RSI, Wm%R, stochastics, MACD, volume bars, accumulation/distribution, Chaiken oscillator, and On Balance Volume, and maybe we can get somewhere.

I read so many comments such as "---I thought", "technicl analysis said--", "I was late---", and I wonder what exactly, precisely, specifically led to such opinions.

The above is certainly not to claim technical analysis ability at this desk. If there were such, then there would be no need for an escape tactic in advance for every trade entry, would there?