SPX cash down 1.1 points and SPX future (ES) up 3.75 at this time. Why they are heading to different directions?
Who can Explain this?
Started by
redfoliage2
, Jun 01 2007 06:11 AM
6 replies to this topic
#2
lscharpen
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Posted 01 June 2007 - 07:12 AM
SPX cash down 1.1 points and SPX future (ES) up 3.75 at this time. Why they are heading to different directions?
Redfoliage,
I don't believe the cash index will be 'trading' until the NYSE opens. It (spx cash) should not have changed value since the close yesterday. So I ask where did you get the information that it was now 'down 1.1 points'?
Lee
#3
redfoliage2
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Posted 01 June 2007 - 07:43 AM
Lee: SPX cash always changes even before the regular hours (started about 7:30 am). Not just today. I can see it from my IB trading screen. The question is why the futures and the cash sometimes go different directions.SPX cash down 1.1 points and SPX future (ES) up 3.75 at this time. Why they are heading to different directions?
Redfoliage,
I don't believe the cash index will be 'trading' until the NYSE opens. It (spx cash) should not have changed value since the close yesterday. So I ask where did you get the information that it was now 'down 1.1 points'?
Lee
#4
PorkLoin
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Posted 01 June 2007 - 10:14 AM
Hi Redfoliage,
I've seen the futures premium go all over the place at times. I do think the futures prices lead, and it may be an oversimplification but I picture the futures swinging high or low versus the cash, and usually the cash then follows the futures.
Best,
Doug
#5
danzman
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Posted 01 June 2007 - 12:32 PM
Hi Redfoliage,
I've seen the futures premium go all over the place at times. I do think the futures prices lead, and it may be an oversimplification but I picture the futures swinging high or low versus the cash, and usually the cash then follows the futures.
Best,
Doug
Yes, futures lead cash. SPX index doesn't update until 9:30AM. Not sure why IB shows quotes before then. Follow the futures when in doubt.
D
I don't make predictions, I just react.
#6
slatedrake
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Posted 01 June 2007 - 02:08 PM
Hey danz,
How's your COT stuff looking these days?
Before you start trading get your brain around risk control. Know how much leverage you're using and know when to go to cash if you're wrong.
#7
danzman
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Posted 01 June 2007 - 03:31 PM
Hey danz,
How's your COT stuff looking these days?
Still a buy....gotta love mechanical trading. I would hate to be a new trader in
this day and age. It's information over-flow out there. "How to trade stocks" on google
results in 28 million results.
D
I don't make predictions, I just react.
