I have a formula that predicts the day's DJIA result, and would like to find the best vehicle to trade it with. I'm inclined to just use S&P contracts, or the S&P minis, due to their liquidity and fairly close correlation to the Dow, but would be interested in hearing any recommendations from traders experienced with trading instruments more closely tied to the Dow. I plan on buying/selling at the opening or shortly thereafter, and will close-out the trade at the market close. Thanks.
Futures: http://www.cmegroup.com/trading/equity-index/us-index/dow_contract_specifications.html Options: DJX http://www.cboe.com/micro/djx/ 1245