GS & SP500 (ES,SPY etc.)

Discussion in 'Trading' started by increasenow, Jan 29, 2008.

  1. many say that their 'one indicator' to trade the ES, SPY is GS...why is this?...who uses it and what do you think?...approaches to it etc...thanks in advance!!!
  2. 1) GS has become a darling because of its recent huge profitability more than ever before. The "most admired" companies attain bellwether status in the market, i.e. GS, MSFT, IBM, T, GM, X.
    (2) It's also reflective of how the USA prides itself more on it's financial engineering, manipulation and trading ability than scientific and technical engineering prowess.
    (3) In a liquidity-driven environment, money flow is important. GS would be extremely sensitive to that.
  3. Sometimes moves in the GS stock leads moves in the stock market.

    GS has recruited the best analysts, traders, economists; in the world to work with them.
    So they can forecast changes in market conditions better and earlier than anyone else.
    For example they are the only financial which didn't got burned with the subprime mess.

    So, a plunge in the GS stock MAY lead a plunge in the indexes by some days.
  4. thanks...any keys to look at for intrday trading?...meaning GS gaps up/down or when WAY leading ES or WAY lagging ES...that ES will pullback or retrace to GS level?