On average, spooz tend to lead with respect to the overall market direction, though these days the lag is near impossible to exploit. In fact, if you analyze tick data from spooz and spys, you will find that a lot of the time HFTs will defy the laws of physics (i.e. act faster than the speed of light).
funny that..i have traded stocks..index and commodity futures..and options..and guess what..i am ONLY going to trade the MES from now on why..because i don't have to trade..and it suits me just fine..in fact..it is one of the best things that ever happened for small retail traders..imagine..$0.74 cent round trip all in..with current ADR's 10 points is nothing with the ES..and..wait for it..they EVEN have MES Options now !!!!!!!!
hello Ken..it's been a very long time..probably 18 years i would say..i done everything from lead/lag sectors to spotting the AX..or is it AXE anyway..i will not elaborate..that would not be fair..but i have a question if you don't mind..have you included Order Flow Analysis in your training courses yet? M3
There are many existing market internals and you can create your own. You can view tick, adv issues, up volume, etc, etc, on the NYSE or just on the Nasdaq 100 or just the S&P 500. You can refine it even more and just follow the them on FAANGM or top 10 instruments in the S&P. You can analyze Naz 100 above VWAP vs FAANGM above VWAP and on and on and on. There are sectors within indexes that like $BKX that can be used, it is up to one's creativity. They are all exploitable for someone.
i assume you mean mostly for individual stocks..although i sometimes look at T&S for ES..but unfortunately at the moment MT5 have the colors reversed..so i have to keep reminding myself in the corner of my eye that Bids are Asks..and Asks are Bids i am working on getting them to add some subtle changes to their DOM trading screen..which if they do then MT5 will be as good as any charting and order execution platform out there..with AMP futures you get CQG data feed with MT5..so no issues there i was considering setting up traing for MES trading..as with your stuff..and many others i used along the years..i finally came up with my own very simple way of trading the MES..all short term trades..no holders no matter what..i even delved into the science of Order Flow Analysis..kind of like when Socrates touted his VSA stuff ..but to be honest..all it does is keep you from focusing on what you need to focus on in order to get in and get out with some decent profit..a decent profit on a MES trade would be 5 to 7 points..which in current climate is nothing.. of course..the real beauty of MES is the famous position sizing.. remember Mr Van Tharpe..is he still alive or has he handed it over to a sibling to follow in his footsteps? M3
Isn't MES the tail wagging of the ES? Is there any explicit relationship beside what they represent, that causes them to move synchronously? Just Curious.
MES and ES are effectively identical products (with MES being a 1/10th of the size), traded on the same exchange and settled against the same special quotation. As you can imagine, any significant deviation (i.e a full tick ) between the two will be quickly arbitraged by HFTs.
it's all on CME website..but for those who are new to futures trading..it is the E-micro contract..not the E-mini contract ! MES is 1/10 the ES..so you have 4 ticks in each..MES tick being €1.25 and multiply by 10 for ES for €12.50..so..4 ticks one point..$5 versus $50!!!!!! do you now see the advantage for the small little fellow with his head screwed on..and not gullible enough to get sucked into all the hype about Order Flow Analysis and charts screens that resemble a Van Geogh painting the good bit..small money to start..lowest commissions out there..access to the most liquid market in the world..well..close enough..and..you can even use ES data to trade the MES..as it is very rarely they drift that much apart..for arb traders will quickly take advantage..as they are what i think is called fungible..10 MES contracts can be used to offset 1 ES contract.. again..all on CME.. always check the original source !!!!
I'm not sure I see this. If we eliminate everything to the right of the said low in question, its really impossible to make the conclusion that that the TICK is already trending higher. Your green trend line cannot be drawn at this point.