20210407
Long 1 YM 33313, +27
Short 5 MNQ 13613.5, 13613.5, 13613.5, 13613.5, 13613.5, -1.75, -1.75, -1.75, -1.75, -1.75,
Long 5 MNQ 13600.5, 13600.5, 13600.5, 13600.5, 13600.5, +13.75, +13.75, +13.75, +13.75, +13.75,
Long 1 RTY 2247.8, -0.8
Long 1 RTY 2231.7, -0.8
Long 1 RTY 2230.5, -0.8
Long 5 MNQ 13584.5, 13584.5, 13584.5, 13584.5, 13584.5, +12.0, +12.0, +12.0, +12.0, +12.0,
Long 1 RTY 2224.1, -1.1
Long 5 MNQ 13580.25, 13580.25, 13580.25, 13580.25, 13580.25, -2.25, -2.25, -2.25, -2.25, -2.25,
Long 5 MNQ 13565.50, 13565.50, 13565.50, 13565.50, 13565.50, +20.0, +20.0, +20.0, +20.0, +20.0,
Total MNQ +208.75
Total YM +27
Total RTY -3.5
One of the extreme challenges in trading recent Index Futures action is what some would call divergence. But that's not quite the right term. Bifurcation is closer, as the strength in one index, like the NQ, just adds more selling weakness to the RTY, and/or the Dow component indices, like the ES and the YM. It's like watching the behavior of two opposing magnets repel each other.
And just as you might expect, extreme climax sell signals often up in the stronger just when the weaker is offering the same, but for long positions. Thus, you might end up, as we did for a few minutes both long and short in opposing directions in two different indices.
And you might also like to think, that this should work, and that they return to some more relative balance, working back towards each other. ....but it seldom works out that way.
We call this obstinacy 'vice-a-versus play'. Or just 'versus play', for short. And it's most typical these days between the RTY and the NQ, two of my favorite trading vehicles... but not so much on days like this..