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Dustin R
Trader @ Tic Trading/Sumo Capital, Chicago, IL

Technical Analysis for Long/Short or Spread Trading

 I was curious if anyone out there who trades long/short equities or spreads in futures finds technical analysis (TA) of any kind useful in identifying some basic things like overbought/oversold, etc. Also, why or why not is TA relevant to spread trading?

Thanks everyone!

Tuesday 10/20/2020

Wax on.. wax off... Risk on... Risk off...

Do you prefer trading the news/headline reports? Or do you let the dust settle before you act? Knowing the answer to this question may help you in the coming weeks/months.

I trade the news for small size, and then I tend to risk more when the dust settles... this is good for me because I get to participate in headline trading but I’ll never be the fastest or best... so I stay humble and trade it for pennies.  I thrive when the chaos ends and the trash needs to be picked up.  I guess I’m a trash man.

also go check out Part 2 from @Weston Nakamura about this very topic!

(Video) Pt. 2: How To Trade Geopolitical Risk Headlines

Follow up market analysis to Pt. 1 “BEFORE YOU TRADE TRUMP COVID...”

On Oct 2, US Prez Trump stopped the world by tweeting he has tested COVID positive, global equity markets fell instantly and sharply - at which point I recorded my video “BEFORE YOU TRADE TRUMP COVID...” (link here) which @Raoul Pal mentioned on his Friday Daily Brief w/ @Ash Bennington - thank you all for the views, likes and comments, I’m genuinely glad it was of some help! By the time that the RVDB aired after market close that VERY same day that started with Trump’s COVID tweet, SPX futures had regained all losses from the initial drop, and by the next market open on Mon, every major global DM market was rallying higher. We all know the narrative for why the risk-on rally off the headline (happened to be the exact narrative for my counter-market bull case stated in the video), but if Trump + COVID = market positive, why the sharp drop? And why did markets recover when/how they did?

2 ½ weeks have passed, and I’ve recorded an analysis on what happened in markets that day and the subsequent days following, and WHY they behaved the way they did. I knew why at the time (hence recording the video), but in order to conduct this analysis/explanation, I needed to put some time & distance from the event so as to properly isolate the window of time from anything current.

This is NOT a... (More)

Short-term/Swing traders

In my trades, I take a rule based approach. This helps me to stay disciplined especially when things are going against my positions. It also stops me from getting itchy fingers when things are going well or when nothing is happening in the market and you feel like you need to do SOMETHING.

I have outlined the approach on my blog post (link below). Not sure if people would find regular updates on an index level to be useful? Please let me know.