Tuesday, November 10, 2009

Schwab VIXEN / NYAD Setup

This post is in response to a number of reader queries about the GE VIXEN. To help clarify how I use this setup in real time I'll show the one of the screens I watch during the day to trade GE.
Frequent readers know that my daytrading platform of choice is Schwab Street Smart Pro, which I favor for a number of reasons including the real time new daily hi -lo count scrollers (shown here tucked between the 2 larger GE charts) and the ability to drop comparison tickers on top of primary stock or ETF tickers. In this case I've got the VIX laid on top of GE on the left and the NYAD laid on top of QLD on the right. I've set the VIX and NYAD to display as mini-candles, although I can just as easily display them as a line or hi-lo bars.
I really like the Schwab NYAD, which is displayed as a ratio of advances/declines.
Although I posted the GE/NYAD studies a while back, it's still a killer application and I use it in conjunction with the VIXEN to catch as many setups as possible (and also to provide signal confirmation) I watch both the GE/VIX and GE/NYAD setups in parallel. There's over a dozen posts each on the GE/VIXEN and the GE/NYAD in the archives so , if interested, scroll back and read a few of them for more details on how the dynamics of these trades typically play out.
I'm not showing the actual trading window here, that's on another screen along with the scrolling 3 finger lead, the 7 finger lead, a dynamic momentum signal (proprietary to Schwab) and a few other windows (news, portfolio management, and a dynamic watch list that let's me replace GE with any other stock or ETF that I choose).
These setups work well for me because I trade only a handful of stocks and ETFs (actually less than 10) and I prefer to carefully study the dynamics and idiosyncrasies of my little basket rather than jump all over the market chasing the fast money.
Not for everyone, but it works for me.

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