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>My observations suggest to me that the E-Mini contracts (NQ-NASDAQ & ES-S&P)
>are exquisitely tied to their underlying (NDX & SPY, respectively), such that
>any momentary discrepancy is immediately brought back into line by the arbs.
>So my answer to your first question is YES.
I would disagree in the case of SPY. If you're a long-term trader,
SPY is a good approximation for the S&P. If you're a short term trader,
I would warn you against using a system based on SP data to trade SPY.
If you compare daily bars, they don't match closely enough.
Recently I tried out a variant of Oddball using SPY instead of the
actual index. Try as I might, I could not make it profitable. Same
identical trades in both markets, but using SPX made money quite
well, while SPY lost money like crazy.
,|___ Alex Matulich -- alex@xxxxxxxxxxxxxx
// +__> Director of Research and Development
//___) Unicorn Research Corporation -- http://unicorn.us.com