A scalper explains why he focuses on Nasdaq order flow rather than intermarket analysis. He fades ES breakouts when Nasdaq moves aggressively, and now trades only Nasdaq. Intermarket cues matter only when there's a clear outlier, like Nasdaq sharp while ES stays flat.
Do you ever do intermarket analysis?
With other instruments? Yes.
No, because like you said earlier, I care about the order flow that's happening right now and that's it. I use when I have, for example, a clean balance area and I see the Nasdaq breaking aggressively one side of the area. I was fading the ES breakout because Nasdaq is usually a driver. Right. Because it's less liquid but gives you a bias for the day. And with additional confluences working really amazingly. I am not doing this now because I only trade Nasdaq. Right. The intermarket analysis, it's on the driver of Nasdaq.
The only intermarket analysis I would do is if there's a significant outlier, let's just say the Nasdaq is up significantly and the ES is doing nothing.
Yes.
I'll then look at the Nasdaq. I'll look at the stronger name, either reject support, reject resistance, and then maybe play the opposite from that. But when they move in sync with each other, I don't really see an edge in that.
