Current Market Divergence?

Hello everyone,

I am noticing that ES and NQ and YM daily and weekly charts are not moving consistently; some are trending up while others are flat or trending down.

Some questions:
1. Do you observe similar trends, currently?
2. If so, how are you handling this? Are you still trading?
3. I work from 9-5 and only use big charts. Since I see this difference on big charts... does this mean I shouldn't trade?

Any thoughts/tips are greatly appreciated. Happy Trading!


Cheers,
Annu

I have noticed the same phenomena and don't really have a good answer. I believe GW says that when the Dow and Nas are in divergence that one should not trade and that most trades won't work. It would be great to hear from someone experienced and how they are treating the current environment.

I think it is fairly apparent that the DOW and S&P have headed south. Now it appears that the Nasdaq is thinking about catching up to his buddy. At least that is the way it appears to me on the daily:-) I could be wrong though... if I am, somebody stop me from sounding like an idiot:-) Toooo late:-) lol.

As for me I'm gonna sit on the side lines and practice some trades during this period.

RichieRick Wrote:
-------------------------------------------------------
> I think it is fairly apparent that the DOW and S&P
> have headed south. Now it appears that the Nasdaq
> is thinking about catching up to his buddy. At
> least that is the way it appears to me on the
> daily:-) I could be wrong though... if I am,
> somebody stop me from sounding like an idiot:-)
> Toooo late:-) lol.
>
> As for me I'm gonna sit on the side lines and
> practice some trades during this period.


Nope I agree with you but I make good $$'s on puts and if the total market is going in the same direction it is time to jump on th camel's back. But you should practice...good idea!

I did GW trades based on the nasdaq on Tuesday, today they all reversed, broke even or small loss.. I think you are right to avoid trades when the dow and nasdaq are not HRFP or FP at the same time.