============ T trader; Whitster likes it; so some pro traders do like it. Like Dow theory; plus you can look back to 1929,1933 on Dow. Maybe the '' popular''index, maybe many traders dont like the idea of a newspaper picking the stocks which make up the index.And even a great newspaper like WSJ; dont want power concentrated too much .Maybe 100 stocks,500, or 2000 is simply preferred by some And the fact the Dow does seem to be the most widely reported index on the nightly news; perhaps causes many to go the other way, and spend more time in Investors Business Daily& other news sources
Thats how I make an easy 10 or 15 points every day, when the thing gets way out of whack cause just me and 2 other guys named Fred are even paying attn.
When the es started trading the cme gave greatly reduced exchange fees for a very low annual fee to drive volume. The best you can do with the ym is buy an IDEM seat for $33,000 to save about $.80/side. They probably waved fees for a few months when they introduced the product. Additionally the ES was a welcome alternative from the pit when it was introduced, 5 times smaller. And the pit used to be twice the multiplier it was then and is now in the 90's. Never hurts to be first.
This is a good thread...It's good to read about the YM futures product and get some history about it. If you like to compare products and was not their from the beginning, this thread is a great way to tighten every nut and bolt with...Thanks guys...
What's nice is that you can make a watch list and track all 30 stocks. I know people who trade 40 cars on the YM with no problem. The vol is always increasing. Also check out this link on some of the advantages to the dow e-mini YM http://www.puretick.com/faq.html#YM
True, and it is conversly price weighted on only 30 stocks. Easier to see the tail wagging the dog. I quit trading the ym for a couple of months but have seen some good things the last week and may step back up. Seeing opportunities to trade it side by side with the es like I haven't seen since late last year.
Read all about it. I used to trade the hourly and end of day close on the dow on tradesports following the underlying movers, did very well. http://usmarket.seekingalpha.com/article/18041
YM ? A joke. ES ? A joke. When the VIX is consistently above 20, they'll be tradeable. In the meantime, real traders are trading ER2.
Can you explain a little bit? Are you saying that MMs are continuously readjusting their bid and offers on every Dow stock so there is no YM/Dow arb possible? Thanks.