I've been trading these 3X ETF's, but I need something that precedes their movement, other than Dow or S&P. I know it's the Russel 2000, but what indicator could I watch? Hopefully someone will help without the flames usually applied to those of us who are fairly new to the game.
Futures might lead sometimes. The indicies don't update instantly, there are a couple of seconds delay from tick to tick. Futures prices update everytime a trade takes place.
There isn't really any "exploitable lead"... it's just that it takes a bit of time for prices to be reflected on the ticker so they sometimes appear to lag.
Yeah, should've clarified.... Bottom line is... indicies update every few seconds... futures update everytime a trade takes place...
Thanks for the replies. Today was interesting watching the post Fed action, as it always is, but with 3X ETFs, it really gets exciting.
you're looking at small caps - try $RTY on your quote montage. Also, FYI, the baskets or holdings are published on a daily basis, they can be found on the company website. Additionally, the R2k is 2000 names and TNA/TZA have been optimized down to just shy of 700 names. I'm sure if you look hard enough you can find names in the R2k that will tend to lead to the upside and others that will tend to lead to the downside. Often it can be a hard read because some names are very thinly traded so you never know if its volume or an indicator but back testing will work. Good luck!