Thursday, February 23, 2012

ES VS INX

I have had several people contact me as to the reasoning for the outcry I had to sell short the 1367.21, with the call to cover at 1353.30.  It brings to light the ongoing debate why I use continuous contract on tradestation vs the true cash, seeing that continuous contract just doesn't make much sense.  I wouldn't disagree but I can tell you that for some reason it just does on this one.  As you can see from the two charts INX did not signal a sell at 1367.21 and @ES did with a price target on the pullback at 1353.30.  We never closed above 1367.21 on the daily and the low tick for the day yesterday was 1353.25.  INX gave no indication of either move its somewhat lost in space here looking for a pullback to 1352.18 but with no clear upper fib to have sold off of.  I could take either side of that debate.  @ES sloppy?  Maybe.  INX clearer, probably, but I tend to do what works and I keep an eye on both.

I have attached both charts for illustration.