Lately, we seen the Russell lose its leadership role among the 4 index
futures contracts we follow. When it is the leader, and it diverges
against new lows in the other contacts like the mini Dow and E-mini NQ,
it usually means a turn is at hand, and added to the other technical
tools we trade with, can be a strong supporting indicator. However,
when it's not leading, and in fact is lagging in the short term action
of these intraday swings, more stop-outs occur and the TF reluctantly
overcomes its divergence and joins the prevailing trend. All this is
reflected in the bars of the daily frame currently, that clearly put the
trend in a consolidation / build pattern. Eventually, this pattern
should be resolved, and TF should again lead the market.
Trade Summary
20120507
Short 2 NQ 2636.25, 2635.50, +3.0, -0
Long 1 NQ 2630.5, +6.0
Total NQ +9.0
