Question for ES Traders

Discussion in 'Index Futures' started by EMini-Player, Oct 17, 2003.

  1. Do you watch NQ while trading the ES? If so, how do you use it to your advantage? Do you ever take a position in ES based off a strong move in NQ?

  2. taodr


    Fast, I am not trading the NQ much now. Used to trade it all the time. Trading the ES now I find I hardly look at NQ. Looking more at relationship between YM and ES. I notice if Dax is down nq will drop and visa versa.
  3. tao; can you post some quirks you've found between ES and YM? Or how you're using YM with ES? Do you ever take a position in ES based on strong move in YM?


  4. Trade the ES, NQ, DAX. Watch INDU, Sox, trin, tick, internals, IBM, MER.....stocks in the news.....
  5. Can you provide some specifics on how this all fits together for you?


  6. I'm looking for divergences and/or confirmations...being an ex-floor trader....I miss the sounds and 'smell' if you will of the it took a while to let an intuitive edge come thru for me.....

    this is rather simplistic but for example only: if NQ trending higher...but SOX lagging or not confirming in charts....I'll look to short NQ.....of course I'll disect SOX a bit to make sure 1 stock isnt down big, etc.

    It is important to observe the relationships and how they change....ES may be stronger in general than NQ or vice versa...but it is not going to stay that way forever....the market is like an amoeba ...constantly changing.....

    I know I am not explaining this clearly....probably a defect in my mind....if I break it down scientifically, i will lose the intuitive aspect that makes it work.

    If you want to trade NQ i suggest you watch 8 or 10 of the top cap stocks which make up 30% of the index...they give a clue....

    Another thread asks if you have to be a math wiz to trade....I don't think you need to be a rocket scientist...that may be a hindrance.....but I do think an intuitive juggler of numbers and great memory for numbers helps!

    Ramble on!
  7. spyderman, post more...I totally understand what you're saying. I'd like to focus more on ES since I go for quick hits for 4-6ticks and I like the fact that the quick hits are worth more in ES :D

    For now, I just watch ES and NQ, but I'm wondering if watching NQ to trade ES is helpful at all. At times, it actually causes some confusion. For example, this morning NQ took more of a hit than ES. Now, I wanted to go Long on NQ since ES was showing a little strength and was bouncing off support. But I wasn't sure of whether I should Long NQ or Short ES since NQ is usually the leader.

    Do you think it'd be better for me to watch ES alone? Or do you find it valuable to be watching NQ while trading ES?


  8. Hawker


    Hi Fast,

    I don't trade the ES however I observe the ES contract quite closely to trade the YM . I've learned that the ES leads the YM since the YM is mostly random.

    Regarding the NQ and ES relation I've learned that NQ leads.

    In an upward market most of the big guys stick to fast growth stocks ( read Tech stocks) causing the Nasdaq to lead up. Conversely in a downward market the financial stocks are safer than tech stocks causing the move of capital into the S&P components hence accelerating the decline on the Nasdaq stocks, leading the way down as well.

    Hope this help.
  9. Thanks Hawker. Just want to make sure I'm understanding this correctly: NQ will lead up moves and down moves.

    So it is helpful to watch NQ when trading ES since one can take a position in ES based on a strong move in NQ?

  10. Ditch


    I can't believe people write such nonsense. Anybody who has watched NQ and Es closely over some time can figure out that NQ and ES like to switch roles between leading and lagging:confused:
    #10     Oct 17, 2003