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mcteague
 

Registered: May 2012
Posts: 21

 

09-09-12 04:22 PM

From a trading perspective, what is the relationship between the es and the s&p?
Should I be analysing the index when trading the future? If so, what should I look for? What should concern me? Thanks

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oldtime
 

Registered: Jun 2011
Posts: 7348

 

09-09-12 07:12 PM


Quote from mcteague:

From a trading perspective, what is the relationship between the es and the s&p?
Should I be analysing the index when trading the future? If so, what should I look for? What should concern me? Thanks

well, in the old days nobody paid much attention to ES and occasionaly you could make a small bet on the divergence. But nowadays everything is arbitraged on the sub atomic level so there isn't much opportunity for the small retail trader.

If I was trading ES again I would have on my screen

DX
GC
ZN
CL
EUR/USD
DIA
QQQ
SPY
YM
NQ

and ES

and today you probably need to keep your eye on all the foreign exchanges, especially DAX

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FrankSlaughtery
 

Registered: Aug 2010
Posts: 811

 

09-10-12 12:37 PM


Quote from mcteague:

From a trading perspective, what is the relationship between the es and the s&p?
Should I be analysing the index when trading the future? If so, what should I look for? What should concern me? Thanks



the es is the s&p - by definition they are related b/c they are each other - the es is just the futures contract of the s&p index - the values have to equal (accounting for net cost of carry) otherwise arb would eliminate the diff immediately

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newwurldmn
 

Registered: Apr 2011
Posts: 2618

 

09-10-12 01:00 PM

on a microstructure level: es is faster update than spx because spx require calculation which in fast markets or the open can be delayed slightly.

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Truff
 

Registered: Oct 2003
Posts: 970

 

09-10-12 02:56 PM


Quote from oldtime:

well, in the old days nobody paid much attention to ES and occasionaly you could make a small bet on the divergence. But nowadays everything is arbitraged on the sub atomic level so there isn't much opportunity for the small retail trader.

If I was trading ES again I would have on my screen

DX
GC
ZN
CL
EUR/USD
DIA
QQQ
SPY
YM
NQ

and ES

and today you probably need to keep your eye on all the foreign exchanges, especially DAX

If you are trading the ES, then just look at the ES in multiple time frames and nothing else. Watching any of that other stuff will just be additional uselsss noise that can only negatively affect your judgement.

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high99
 

Registered: Jun 2002
Posts: 249

 

09-10-12 03:53 PM

I trade both ES and the SSO ETF. They are the only two charts I watch. Used to have a chart of the Index, however it has a lag time of a few seconds, and I found it to be redundant and not needed. Use to keep more charts up, but found them to be of no use, and made my eyeballs roll around in the sockets trying to keep up with the nonsense. My compatriots have 4 monitors going at once, but they never seem to be monitoring 3 of them. It just makes them look important in their own mind. But whatever. I also tried the multiple time frame method. Once again to much conflicting input. KISS for me, which works after 10 years of fucking around with things. Also, opinions are like armpits and assholes. We all have them, and they all stink.

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