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sunday-afternoon-thoughts

Sunday Afternoon Thoughts

by TraderCaddy on February 17th, 2008 at 11:34 am

I came back from Home Depot, climbed the ladder, started cleaning the gutters (it’s 82 degrees now-for the Yankees), and sprained my back. So here I sit in a weird position glad I am not on I-4 stuck in traffic bound for the Daytona 500.
Anyway, there is a website which could assist you daytraders and/or short term traders. Here is the link.

http://www.market-topology.com/

Just type in your symbol and you can see which stocks and ETFs have a high positive or negative correlation. It probably means nothing to the daytrading gunslingers who like to trade the mo mo flavors of the day (or minute), but I like to trade with an edge and in a little more conservative manner. I like to watch one or two stocks that make up a good part of an ETF and then trade the ETF. For example if you type ABX one can see a 90% positive correlation with the ETF GDX. Type C and you can see an 85% positive correlation with XLF. Type INTC and there is an almost 80% positive correlation with SMH. By trading the appropriate ETF one can trade with a larger amount, with less risk, and not stroke out with every tick of a mo mo stock.
Hope this is of interest to somebody. Enjoy the Sunday afternoon. I am going to wait and see how Phil Mickelson blows this one.

4 Responses to “Sunday Afternoon Thoughts”

  1. RaginCajun Says:

    5 stars, good info.

    went to the site, it wouldn’t let me enter a symbol

  2. TraderCaddy Says:

    RC-Thanks. I tried it and it took me to the home page. I then hit “USA” under equities markets and it took me to the page where you can enter the ticker symbol in the “stock code” box and then hit enter.

  3. JakeGint Says:

    Gambling at Bushwood!??

  4. dinosaurtrader Says:

    Sweet site, thanks TC!

    And to think, I used to pay $1650 a month for a Bloomberg monitor to do the same thing…

    -DT

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