YM getting thin

Discussion in 'Index Futures' started by bsparkyman, Feb 1, 2007.

  1. Has anyone noticed the ym getting a bit thinner? Volume was down last month but the last few days the spread is weak, have seen a couple ticks more often than usual. As mentioned in an earlier thread, their were no bidders at 12666, most traders would just skip the number and bid at 67. Even the IDEM seat prices have slipped a bit the last couple of sales. Are some big liquidity providers moving to the es with the merger?

    I am still trading the ym buy am using the es chart for confirmation as the ym just is not ticking hand in hand with the cash like it used too.
  2. Don't trade it - ER2 is the way to go!

    You'll have to revamp your strat I guess, but give it a try if you haven't :cool:
  3. I am ready to trade tiger shrimp futures in Hanoi, gotta be flexible... :D
  4. CONR


    Why do you like it as opposed to the ES or YM?
  5. Neet


    I did notice a few 2 tick spreads today on the YM but imho it's still far from thin.

    ER2 is far too volatile for me.
  6. Lucrum


    I've never been particularly attracted to ER2 either.
    One thing I've noticed is that while the ER2 averages more daily volume than YM. In after hours it has maybe half the market depth of the YM.
  7. I trade all the minis, but ER2 always stands out as working best with my strategies.

    Best to all.

  8. Grant


    May I ask one of you Gentleman which e-mini future has the closest correlation to movement on the DOW cash, ie point for point?

    I ask because for the last month or so I've been watching the DAX and Stoxx futures. If the DOW ticks up (down) these indexes will follow 99% of the time. However, they also tend to overshoot by a few points (volume of orders I suppose). By the time they have corrected the DOW may have changed direction and so it develops almost into a game of "catch up".

    The indicators I'm using seem to work better on the cash DOW than the DAX or Stoxx futures, hence which has the best correlation to the cash?

    Also, does the cash or future lead?

    I am looking at this from a scalping persective.

    Thanks in anticipation.

  9. DWV


    I have been trading the NQ more often since they went to $5 tick. It gives you the same benefit of the smaller spread that makes the $5 YM attractive but volume is superior.
  10. Ym favors a means reversion strategy.

    ER2 favors a breakout/trend following strategy

    thus, traders who favor one strategy over the other find one or the other more appealing
    #10     Feb 3, 2007