And check out the trades so far: |
John Townsend
Email: tsiTrader@gmail.com
Friday May 31, 2013
Day 3
As indicated on today’s blog post, I have found it infinitely preferable to switch out the 5 futures securities with their respective equivalent ETF.
One of my goals is to make trading decisions after the stock market closes each afternoon for entry/exit at the following morning’s NYSE open.
As futures trade virtually 24 hours a day, and begin trade for the following day a mere hour or thereabouts after the NYSE close, there is a serious issue of comparing apples with oranges that is NOT what I intended to spend my time trying to do.
Additionally, futures trade purely on margin, each having a different margin requirement as well as a unique and additional overnight margin requirement. And, futures are usually leveraged at either 50:1 or 100:1.
Again, trying to make sense of this with respect to stocks is possible, and I sincerely thank the many readers who wrote to offer suggestions regarding how this may be handled, but this distraction is NOT serving any of my objectives for doing all this work, whatsoever.
To this end, effective immediately and including today’s trade, I have made the following substitutions:
iPath S&P Goldman Sachs Crude Oil ETN (OIL) = Crude Oil Futures (/CL)
PowerShares US Dollar Index ETF (UUP) = US Dollar Index Futures (/DX)
SPDRs S&P 500 Trust Series ETF (SPY) = E-mini S&P 500 Index (/ES)
SPDRs Gold Trust ETF (GLD) = Gold Futures (/GC)
SPDRs Lehman Long Term Treasury ETF (TLO) = 10-Year UST Notes (/ZN)
The Trade Score Card has been properly adjusted to ‘pretend’ that trades made using a futures contract (there were just two - both trades on this morning’s open) were made using today’s opening ETF price, rather than the future’s opening price of last evening’s trade.
I have chosen 10 ticker symbols from a smattering of market segments for this study:
1. | Boeing Co. | 6. | Gold Miner ETF | ||
2. | Crude Oil ETF | 7. | Goldman Sachs | ||
3. | US Dollar Index ETF | 8. | Home Depot | ||
4. | S&P 500 Index ETF | 9. | Microsoft Co. | ||
5. | Gold Futures ETF | 10. | Long Term Treasuries ETF |
So here are our 10 charts that we will begin with. I took a picture of each following the close of Friday’s trade.
*******************************************************
1. Boeing Co. (BA) |
2. Crude Oil ETN (OIL) |
3. US Dollar ETF (UUP) |
4. S&P 500 Index ETF (SPY) |
5. Gold ETF (GLD) |
6. Gold Miners ETF (GDX) |
7. Goldman Sachs (GS) |
8. Home Depot (HD) |
9. Microsoft (MSFT) |
10. Lehman Long Term Treasury Notes ETF (TLO) |
Keep in touch and let me know how this is working for you, and/or how I could make it easier to use, OK?
Thanks,
John