ES leads YM or reverse?

Discussion in 'Index Futures' started by increasenow, Dec 12, 2007.

  1. heard a lot of comments on this...what do you think?...does the ES lead the YM or reverse...or should you be looking at cash SPX versus cash DJI?...who is the leader, lagger?...if you look at a 3,5,10 minute chart etc.?...thanks in advance!!
  2. ganesh6


    I think YM leads ES. But somebody can confirm/deny.
  3. xiaodre


    It depends on the day. Sometimes YM leads, sometimes ES leads. The ES is a much thicker index, but the YM is made up of industry leaders. Something to consider...
  4. so...really not worth watching then...
  5. xiaodre


    it's worth it
  6. cd23

    cd23 true
  7. This is the stocks from DJ30 index
  8. babs2000


    Hello cd23,

    could you please explain what exactly "YM leads ES" means?
    Is it possible to backtest "leads"? If yes:
    - what kind of data is necessary for the test?
    - do you have a rule set to implement such a test?

    Thanks for your answers
  9. yes, your point is?...seriously
  10. xiaodre


    okay, I got a little breather while price is chopping. what I mean by it depends is, right now the YM is up 70 and the ES is up 14 points. There's an imbalance there.

    But the thing is, the Dow is loaded with heavy hitters, it's a quality index, so you can't just say the YM is going to snap up another 70 pts to match the ES. But the ES is a much thicker index (500 companies) and is much more heavily traded, so you can't just say that the ES is going to come down to meet the YM (like how some people use the EuroStoxx 500 to scalp the DAX because the DAX normally overreacts and snaps back to the Eurostoxx index).

    The Dow is too high quality to always snap back like that. Does that make sense?

    The balance between the two gives you good information, but it's just information, just another tool.

    If you were looking for a lower quality index to match up against the ES, the NQ generally ah sdiht. Gotta go tradE!
    #10     Dec 12, 2007