Well if you didn't see it yesterday, then you must have seen it today. Huge divergence between big caps and small/mid caps. With every low on YM you should have bought ER2, and with every High on ER2 you should have shorted YM. I didn't see this change between the indices until yesterday afternoon, and as a result there was a fatal impact on my trading results yesterday. YM is lower then it was yesterday and ER2 is higher than it was yesterday.
P/L= $1,166
I actually messed up first thing in the morning because I saw a short setup form. Unfortunately I went short ER2 (should have shorted YM instead), and I ended up letting a $500 winner turn into 3k worth of heat. Absolutely ridiculous, I know, it looked like it was going to be another blow up day. But I held the short, Vowing not to go short ER2 again, and finally covered ER2 around the 9am lows for a small profit. I then made a cool scalp trade with 8 cards for a few ticks based on something I've been noticing, and then I had my computer freeze up while it processed this mornings recording, and as a result I missed the afternoon breakout. I later tried going long ER2 at 841, got stopped out, went short and got stopped out, and then noticed a similiar pattern that we had yesterday (a price and volume peak), so I went short and made about 1/3 my profits.(Again, I never should have been looking to short ER2, but I saw the trade and took it, again I would have been better off shorting YM). I then later did some stock trades, covering my short on SMH and XLE too soon, and then near the close I shorted YM, and that trade was a piece of cake.
So until I see things change, if I want to go short ER2 I will short YM instead, and if I want to go long, I will go long ER2 over YM. Another thing I made a mistake on and failed to notice was that the Nasdaq advance decline line is a much better gauge to use when trading ER2 and NQ, where as NYSE A/D is better used on YM and ES. I'm still using NYSE TICK, but I will look into seeing if NASDAQ TICK is any better to use.
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