Posts Tagged ‘Index’

Alternative ways to trade the Dow Jones Index?

Question by Trufflehunter_22: Alternative ways to trade the Dow Jones Index?
Currently I play around with DIA Options and might try e-mini futures but are there any other effective alternatives to swing trade the DJI that require smaller margins than the futures?

Best answer:

Answer by dredude52
I wish I knew. The wipsaws have gotten so wild, I can’t hardly stay with the trend anymore, or identify it.

I think there is a Double Diamond, but that’s still a far cry from the Dow futures, and I couldn’t live on that. I’ve traded the Dow for about 15 yrs, and hardly know it anymore. I would also rather swing trade, but it forces me to Day Trade.

It’s forced me to trade shorter and shorter time frames. I break it down now into the morning session from 9:30-11:30, and the afternoon session from 1:30 or 2:00-4:00.

I don’t trade the open, but I’m looking for a turnaround or confirmation of the open between 8:45-9:00 that will carry into lunch, then I get out.

Then after lunch, I’m looking for a breakout that will carry into the last half-hour turnaround. These are my “swing” trades now. Forget trying to hold overnight, unless a new trend has just blasted off.

I tried the index options for about a year, but the premium fluctuations were beyond reason. Or you can’t trade the breakouts, because the premium has already expanded, and it doesn’t move at all.

I switched over to trading the Forex in June, then mostly just watched as the Dow finally got into a trend after July. But I’ve made some money with the currencies; they trend better.

Speaking of which, you may look closer at trading the Russell 2000 mini. It seems to trend better than the Dow, and isn’t as wild. The volume has grown considerably, and it’s definately tradeable. Whenever I’m questioning the trend intraday, I look to the ER2.

Good luck.

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S&P 500 Index Plunges After US Hiring Drops September 2011 Technical Analysis

www.StockMarketFunding.com S&P 500 Index Plunges After US Hiring Drops September 2011 Technical Analysis. Weekly closing levels and market commentary on the S&P 500′s performance to the recent US Economic Jobs Report. The S&P 500 encountered resistance near the 1230 zone, which marks the…
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Options Trading – ISE Equity Index Outlook, October 10, 2011

www.optionsource.netJoin Patrick Ceresna, Derivative Market Specialist at optionsource.net, as he analyzes major equity indexes. Optionsource is an official provider of options trading education to the Montreal Exchange, Financial Institutions, Investment Dealers and Day Traders who want to Learn Options Trading like the Professionals.

www.optionstradingcube.com
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Master Options Trading How to Get Wholesale Entries Google (GOOG) & S&P 500 Index Options

www.StockMarketFunding.com Master Options Trading How to Get Wholesale Entries Google (GOOG) & S&P 500 Index Options Part 1. The S&P 500 index closed at 1172.87 up 10.6 points or .91% after hitting an intraday low of 1157.44 and an intraday high of 1176.41. SMF Pro Options Traders hit the…

Australia 200 cash index minimum spread cut to 1 point

Australia 200 cash index minimum spread cut to 1 point

(PRWEB) August 21, 2011

Singapore’s number one CFD provider for customer service*, IG Markets, has cut the minimum spread on the cash contract and SGD-Denominated contract of the Australia 200 Cash index to 1 point.

This spread cut is applicable to standard, mini and micro contracts. It improves the already tight spreads on our extensive range of stock index CFDs, starting from as low as 0.2 points on the Singapore Blue Chip. Spreads on other popular indices include the US S&P 500 from 0.5 points, and the FTSE 100, US Tech 100 and Germany 30 all from 1 point.

Peter McDermott, Managing Director of IG Markets in Singapore has said that this cut, following other spread cuts on indices and major FX pairs, is in line with IG Markets’ high standards of client service and commitment to provide value for money.

“When the spread in the underlying market is narrow, we pass these savings on to our clients with our lowest possible spreads. Our competitive rates include spreads on global indices from 0.2 points, major FX pairs from 1 pip, and commissions as low as 0.1% on share CFDs.”

“With transparent charges, rebates for high volume FX traders and our innovative price improvement technology, IG Markets is committed to remaining Singapore’s best CFD Provider for value for money as well as customer service*.”

Stock indices are a measure of the combined value of underlying stocks in a particular market. A stock index will typically represent a number of leading stocks in a sector, with the Singapore Blue Chip representing companies like DBS, Singapore Airlines and UOB.

IG Markets offers traders 24-hour trading across a wide range of global stock indices, including the Australia 200, Singapore Blue Chip, Hong Kong, Hong Kong HS42, Wall Street and Japan 225. Even when the underlying market is closed, IG Markets quotes out-of-hours prices, which means that traders can take advantage of changes to the market in real time, as other open markets rise and fall.

Along with global indices, IG Markets offers CFDs on FX, commodities, shares, options, binaries and more.

About IG Markets

IG Markets specialises in financial derivatives, principally CFD trading on over 7,000 global share CFDs, indices, FX, commodities, options, binaries and more. IG Markets is part of the IG Group, a UK FTSE 250 member with over 75,000 active clients worldwide. For further information please call +65 6390 5118 of visit http://www.igmarkets.com.sg/.

Remember that CFDs are a leveraged product and can result in losses that exceed your initial deposit. CFD trading may not be suitable for everyone, so please ensure that you fully understand the risks involved. Please consider our Risk Disclosure Statement before you enter into any transaction with us.

Investment Trends’ 2010 CFD & FX Report revealed IG Markets scored highest for overall customer satisfaction among Singapore’s CFD traders. The survey of nearly 8,000 investors, also revealed that IG Markets received the highest scores in the CFD industry for value for money, spreads, margin requirements, easy-to-use platform, charting, efficiency of taking trades, email and telephone customer service, reporting of positions and transactions, and phone trading.
IG Markets (ACRA No. 53059621X) is licensed by the MAS and International Enterprise Singapore.

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Stock Index Analysis Options Trading Education S&P 500 1250 Oct Call vs Put Option

www.StockMarketFunding.com Stock Index Analysis Options Trading Education S&P 500 1250 Oct Call vs Put Option. Live stock index options trading education technical analysis training video on how to trade the current trends of the (SPX.X) S&P 500 Index. Learn how professional options market…
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Using the Dow Jones to Forecast OEX Index Options Market Movement

Using the Dow Jones to Forecast OEX Index Options Market Movement

Boca Raton, FL (PRWEB) August 9, 2006

The Dow Jones Industrial Average (DJIA) is the most widely used indicator of the overall condition of the stock market. This is a price-weighted average of 30 actively traded blue chip index stocks and the primarily industrials. The 30 index stocks are chosen by the editors of the Wall Street Journal (published by Dow Jones & Company), which is a practice that dates back to the beginning of the century. The Dow was officially started by Charles Dow in 1896, at which time it consisted of only 11 stocks. The Dow is now computed using a price-weighted indexing system, rather than the more common market cap-weighted indexing system. Simply put, the editors at WSJ add up the prices of all the stocks and then divide by the number of stocks in the index. (In actuality, the divisor is much higher today in order to account for stock splits that have occurred in the past.)

At OEX Options, Floyd Epstein, President, thinks exactly the opposite! He says, “The theoretical Dow (a method of calculating a Dow Jones index) assumes all index components hit their high or low at the same time during the day.”

“Each day OEX Options provides the Dow projections in our pre-market alert. Traders follow the Dow projections to understand and “read” the short term steps to the market, and then trade OEX index options around the tops and bottoms of the Dow,” says Epstein. “It’s a way to day trade the stock market around “whipsaw.” Most day traders think a whipsaw is a condition where an investor’s security transaction is quickly followed by an opposite reaction. Sometimes referred to as “being whipped,” Epstein says, “There is a familiar pattern to Dow movement…up 350 points, and down 350 points, over a period of time. When the market is very uncertain, and “fear and greed” are more prevalent, whipsaw (movement back and forth around a 100 point range, according to Epstein) is a great way to make money on short-term trends.”

In other words, the “theoretical Dow” uses the daily highs for all 30 Dow components to calculate the index high; and the lows to calculate the index low. In January of 1992, Dow Jones started using the “actual” method, which calculates the index at 10-second intervals throughout the day. Before this point, the theoretical calculation was the only way to compute the high and low of the index.” – Quote from Investopedia.com.

At OEX we use three methods of study to analyze the Dow.

1. Support and resistance longer range lines utilizing Point and Figure Charting. Point and Figure is a mainstay of how Floyd identifies bias, trend, and movement.

2. We see the market typically move in ‘ranges’ of 150 to 350 points, depending upon market conditions, and we utilize our own proprietary ‘counting’ method as to when these shifts occur. Ranges may be less, during whipsaw, but we watch patterns in short term Dow projections.

3. The Dow best translates to the OEX, and we watch and read the stocks leading the Dow and create an equal weighted index that we chart with Point and Figure. We believe knowing the projections and following them can be a key part of a traders success.

Epstein uses the theoretical Dow to project Dow movement over a 21 day period, utilizing point and figure charting, Bollinger Bands and support and resistance lines. (Bollinger Bands is a technical analysis technique in which lines are plotted two standard deviations above and below a moving average, and at the moving average itself. Because standard deviation measures volatility, these bands will be wider during increased volatility and narrower during decreased volatility. Some technical analysts consider a market which approaches the upper band to be overbought, and a market which approaches the lower band to be oversold).

Epstein says, “We trade only the S and P 100 stocks in the OEX, as simple put and call options which we hold a day to three days, and knowing that the Dow projections are a very simple way to “read the future” of the market.”

About OEX Options:

OEX Options is an online stock options trading company that specializes in mentoring its clients to learn how to trade stock options on the stock market. The partners at OEXOptions.com have been trading for over 25 years. Established on the premise to make S and P 100 Blue Chip stocks a simple stock option trading system, OEX Options provides the average stock investor the tools and information to be successful. OEX Options is an online trading resource with daily “signals” and a complete method and approach taught to subscribers and is one of the top index fund option services in the U.S.

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, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

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Stock Market History S&P 500 Index 10 Year Bear Market History Part 3

www.stockmarketfunding.com Stock Market History S&P 500 Index 10 Year Bear Market History s&p index, s&p 500, s&p 500 history, stocks The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock market companies; the NYSE Euronext and the NASDAQ OMX. After the Dow Jones Industrial Average, the S&P 500 is the most widely followed index of large-cap American stocks. A bellwether for the American economy, and is included in the Index of Leading Indicators. Some mutual funds, exchange-traded funds, and other funds such as pension funds, are designed to track the performance of the S&P 500 index. Hundreds of billions of US dollars have been invested in this fashion. S&P 500 refers not only to the index, but also to the 500 companies
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City Index Opens Office in Poland

City Index Opens Office in Poland

London, UK (PRWEB) December 17, 2008

City Index, one of the world’s leading providers of trading products to individuals, today announces the launch of its new Warsaw branch. The Polish office, apart from handling the domestic market, will also function as a service centre for clients from Central and Eastern Europe.

City Index is the first global company to set up a CFD trading service in Poland and to offer a complete service in Polish.

Key features of online CFD trading with City Index include:

-Low margins

-Instant account access, 24 hours a day, 7 days a week

-Trading tools which allow customers to limit their downside and manage their risks

-A simple and intuitive trading platform allowing traders to buy and sell CFDs the instant they want to

-Latest market news, economic data and company announcements.

By trading CFDs with City Index, clients will benefit from the expertise of one of the world’s leading providers. The innovative new trading platform offers real time access to thousands of markets around the world, global equities, indices, currencies commodities and interest rates.

Clive Cooke, Chief Executive Office of the City Index Group, commented, “The opening of a City Index office in the Central and Eastern European market will enhance and strengthen the Group’s offering globally. We have received a huge surge in trading activity and new account openings over the past six months and are delighted to be able to extend our service further into Europe.”

Łukasz Wardyn, Managing Director of the City Index Branch for Poland, Central and Eastern Europe, added, “The trading environment in Poland is increasing in sophistication, with current figures suggesting retail investors totaling over one million. The new office will not only help us to broaden the trading options available to Polish investors, but will also enable us to ensure that our Polish speaking clients based in other countries are provided with a comprehensive service.”

Notes To editors

About City Index:

Today more and more individual traders are discovering the benefits of derivatives and spread betting. And many of them are discovering them through a City Index trading platform. As a group, we transact in excess of 1.5million trades every month for individuals in over 50 countries worldwide. We provide access to a wide range of instruments and indices including foreign exchange and CFDs (in which we’re one of the world’s largest providers), options, and, in the UK, spread betting; a range which is expanding all the time. We constantly widen the range of assets we offer, improve the performance of our platforms and expand the range of services we provide. The result is that our customers will benefit from innovative trading tools with transparent pricing, competitive spreads, and the best in customer service and support – both now and in the future.

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©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.

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Football Opening Day S&P 500 Index How to Weight the S&P Using Call & Put Options Part 2

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