I can assure you that the Cash always takes precedence. The futures and options contracts are only short term instruments... and short term signals always have the highest degree of error...
It's silly to think that the options and futures market predict the cash market. The SPX cash index is a compilation of individual stocks prices and volumes. I suppose you were thinking about the SPY. No way do the futures drive that huge underlying set of stocks in the index.
WRONG!!!!!
IC, you can do better than that! Even if you're nursing a hangover from the holiday!
BTW, I and others say that there's a reason why they're called "Futures". Furrhermore, anyone who traded through the crash of 87 can tell you that futures indeed DO drive a huge underlying set of stocks.
It's trivially simple, actually, and it doesn't take that much money. Always remember that prices are set at the margin. Those who were worrying about the "Japanese owning America" bugaboo based upon the value of their realestate failed to grasp that. One share sale doesn't represent the price of the entire underlying.
Mark
We are short from 152250 and are now targetting 151375. Snugging stop down too. I missed my target by a point, so now I'm just hoping to be flat at the close with a profit.
I hope folks learned from this little bit of intra-day discussion. It's in the tradition of Porkloin's demo's of E-wave day trading back in the 90's.
Mark