SPX/ES/SPY: who leads and who follows and why? - futures io
futures io futures trading



SPX/ES/SPY: who leads and who follows and why?


Discussion in Emini and Emicro Index

Updated by gmax1mum
      Top Posters
    1. looks_one GridKing with 7 posts (3 thanks)
    2. looks_two snusnufreak with 5 posts (1 thanks)
    3. looks_3 BlackSwan04 with 3 posts (2 thanks)
    4. looks_4 Quick Summary with 1 posts (0 thanks)
    1. trending_up 16,896 views
    2. thumb_up 6 thanks given
    3. group 5 followers
    1. forum 17 replies
    2. attach_file 1 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

SPX/ES/SPY: who leads and who follows and why?

(login for full post details)
  #11 (permalink)
Moscow Russia
 
Experience: Intermediate
Platform: NinjaTrader
Trading: futures
 
Posts: 127 since Apr 2012
Thanks: 44 given, 53 received

Here is an articel on zerohedge I found, there is a link in coments there to a PDF file where some guy discusses mechanism in detail, haven't read it completely yet, but his main idea is that SPY and ES are better correlated with each other than either one of them with the SPX

SPY vs ES: Who?s leading the S&P 500? | ZeroHedge

Reply With Quote
The following user says Thank You to snusnufreak for this post:

Can you help answer these questions
from other members on futures io?
Stacked Imbalances.
Sierra Chart
T​​​​​​radestation datafeed (real time and historical) to NT8
NinjaTrader
help to convert from thinkscript to ninjascript
NinjaTrader
Horizontal Line Indicator
Platforms and Indicators
GBP/ARS Pair
Traders Hideout
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Fundamental question on index trading
21 thanks
Excited and scared at the same time
13 thanks
https://ivytrusts.com/ SCAM ALERT
11 thanks
Advice for best # of Ticks to set charts to for MES or MNQ ?
11 thanks
Is Orderflow An Outdated Concept?
9 thanks
 
(login for full post details)
  #12 (permalink)
San Diego, CA USA
 
Experience: Intermediate
Platform: NinjaTrader
Trading: ES
 
GridKing's Avatar
 
Posts: 3,650 since May 2011
Thanks: 584 given, 880 received

and actually, I wouldn't be surprised at this point if options lead them all.....

Index options, Leaps , single stock futures options , the list is endless....



"Successful trading is one long journey, not a destination" Peter Borish Former Head of Research for Paul Tudor Jones speaking on conversations with John F. Carter
Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #13 (permalink)
Moscow Russia
 
Experience: Intermediate
Platform: NinjaTrader
Trading: futures
 
Posts: 127 since Apr 2012
Thanks: 44 given, 53 received



GridKing View Post
and actually, I wouldn't be surprised at this point if options lead them all.....

LoL, this would be just too much for my brain

Reply With Quote
 
(login for full post details)
  #14 (permalink)
Boise Idaho/US
 
 
Posts: 50 since Mar 2012
Thanks: 63 given, 60 received


snusnufreak View Post
LoL, this would be just too much for my brain

It's gotta be automated somehow. No one can keep track of the overnight underlying prices, dividend payouts, options, etc. and put it all together into what the opening price should be.
But, time after time, the indexes gap too close to the contract price (minus open interest) to be random.
They've got to be pegging it with algos or some sort of automated monitoring software.

Reply With Quote
 
(login for full post details)
  #15 (permalink)
San Diego, CA USA
 
Experience: Intermediate
Platform: NinjaTrader
Trading: ES
 
GridKing's Avatar
 
Posts: 3,650 since May 2011
Thanks: 584 given, 880 received


BlackSwan04 View Post
It's gotta be automated somehow. No one can keep track of the overnight underlying prices, dividend payouts, options, etc. and put it all together into what the opening price should be.
But, time after time, the indexes gap too close to the contract price (minus open interest) to be random.
They've got to be pegging it with algos or some sort of automated monitoring software.

Program Trading uses $Prem calculations, DTN offers $Prem indexes on many underliers now




https://indexarb.com/


Quoting 
Program Trading Premium Execution Levels & 92.00% of Total Volume*
Our Fair Value for the S&P 500 today is $-5.25 That price level will not change during the day. Our computers are set for program buying at $-4.15 and set for program selling at $-6.35. If you would like to watch these program buying and selling execution levels, you need to program your trading platform and software and use the correct data feeds.

https://programtrading.com/buysell.htm

"Successful trading is one long journey, not a destination" Peter Borish Former Head of Research for Paul Tudor Jones speaking on conversations with John F. Carter
Visit my futures io Trade Journal Reply With Quote
 
(login for full post details)
  #16 (permalink)
Boise Idaho/US
 
 
Posts: 50 since Mar 2012
Thanks: 63 given, 60 received


GridKing View Post
Program Trading uses $Prem calculations, DTN offers $Prem indexes on many underliers now

Nice Find.

Reply With Quote
 
(login for full post details)
  #17 (permalink)
San Diego, CA USA
 
Experience: Intermediate
Platform: NinjaTrader
Trading: ES
 
GridKing's Avatar
 
Posts: 3,650 since May 2011
Thanks: 584 given, 880 received

@Big Mike started a thread on this, if anyone wants to add to it...



"Successful trading is one long journey, not a destination" Peter Borish Former Head of Research for Paul Tudor Jones speaking on conversations with John F. Carter
Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to GridKing for this post:
 
(login for full post details)
  #18 (permalink)
boise idaho
 
 
Posts: 1 since Feb 2016
Thanks: 0 given, 0 received


BlackSwan04 View Post
If I may interject...

While the underlying stocks on the S&P 500 may trade overnight, the actual index only tracks them during US market hours. Whereas the futures that trade overnight can track the individual stocks and project it's value in real time.
When the market opens, the SPX then gaps to what the value of the underlying stocks require it to be.
So... (if I understand all this correctly), the underlying stocks ultimately lead both the value of the actual index as well as the futures that correspond to them, and the gap is due to the index only tracking during US market hours.

Regards,
BlackSwan

Hey Black Swan, I am in Boise as well. Was wondering if we could discuss trading, Im always down to share ideas and talk about things. Shoot me an email garrettmaxwell23 at gmail.com

Reply With Quote


futures io Trading Community Traders Hideout Emini and Emicro Index > SPX/ES/SPY: who leads and who follows and why?


February 15, 2016


Upcoming Webinars and Events
 

Dealing with burnout w/Linda Bradford Raschke

Elite only
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts