Does anyone exclusively trade the stocks within the SOX on a intraday basis? I'm looking to talk about the direct and indirect relationship the SOX has to the underling components. White
It's the same relationship as with any other index and its components, so what's new? An index is made up of several components. Some correlate better with the index than others. Usually, the components with greater market cap, have a higher correlation with their index since the index assigns a greater mathematical weighting to those same issues.
Then you'd probably be complaining about liquidity, etc, etc. Remember, the markets are here to separate you from your money. The only "products" available for you to easily trade have *no* edge. Tha'ts why they make it into an ETF and into an E-mini and they slice it and dice it into 1000 other ways. These products had their *edge* taken out a long time ago. When you *trade* at this level you're paying retail. Think out of the box and try to trade at the *wholesale* level. But it takes more capital than most retail players have to play with.