Day Trading The SPX 500
Today I went short the SPX500 Futures Index, and I want to explain my method in Day Trading the SPX500 at this level.
We must understand that day trading is the method of exploiting opportunities with regards to fluctuations in day trading to build a profitable business. At this level on the SPX500 I feel this is one great opportunity. The SPX500 is a compilation of several key stocks in different industries to help give an overall index that provides a good measurement of movement in stocks. Many day traders trade this instead of stocks because of the easy technical levels. Many traders also feel that Day Trading the SPX500 can be safer than day trading stocks since after all, the SPX500 index will not go bankrupt and have the stock go to zero like a company can.
Here is a simple chart of the SPX500 this image is from 10-15-2013.
Day Trading the USD/JPY Correlation
In many instances the usd/jpy has a good correlation with th4e Spx500. This is not always the case, however I think in the last few months we have seen this work. Day Trading the USD/JPY can therefore be helped in following the charts when Day Trading the SPX500. Here is an example for you to see. This is the same chart.
As you can see above these charts are almost identical. I have began some shorts on the SPX500 as well as the USD/JPY and I will be holding these as a swing trade over the weekend.
Here is a quick video I made to show the USD/JPY toppy formation.
Have Great Weekend!