Can NQ make and hold new ATH without NYFANG index making a new ATH?
- Thread starter MidwesternTrader
- Start date
Well I will tell you...its the Futures symbol NYFANG. Its the one in the thread I posted. It's the one built from 10 stocks at 10% each.
Hope that helps...
ES
Hope that helps...
ES
The charts are NQ SEP Futures and the NYFANG Index, not the associated NYFANG futures contract. I think the index is a better tracking point as the futures don't trade with a lot of liquidity.
As stated by others NYFANG is broader than the five "Capital Letters" that make up the FAANG acronym.
It is made up of 10 stocks. You can learn more about the composition of the NYFANG here.
https://www.theice.com/fangplus
This tracking index is relatively new and might be worth following to see whether it provides any early clues for general market direction.
As stated by others NYFANG is broader than the five "Capital Letters" that make up the FAANG acronym.
It is made up of 10 stocks. You can learn more about the composition of the NYFANG here.
https://www.theice.com/fangplus
This tracking index is relatively new and might be worth following to see whether it provides any early clues for general market direction.
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The NYFANG futures contract notional value is $50.00 per point, so a 1:1 ratio against NQ would be the play. Short 1 NQ SEP paired with 1 Long NYFANG futures contract. The current gapin the NYFANG futures contract is a little smaller at 4%, not quite the 5% the NYFANG index is below ATH.
Maybe some market players are already in this trade, thus the slightly less spread? So if that % spread between NQ and NYFANG futures tightens, the pairs trade should be profitable. I would think there would be better odds that it tightens versus continuing to widen. Maybe this is a trade to look out for in the future when the NYFANG futures extend out in either direction from the NQ.
The closing prints today on NQ was 7477.75 and NYFANG futures close was 2872.10. With the prints recorded here, we can look back on this over the next week or two and see how the trade plays out.
Maybe some market players are already in this trade, thus the slightly less spread? So if that % spread between NQ and NYFANG futures tightens, the pairs trade should be profitable. I would think there would be better odds that it tightens versus continuing to widen. Maybe this is a trade to look out for in the future when the NYFANG futures extend out in either direction from the NQ.
The closing prints today on NQ was 7477.75 and NYFANG futures close was 2872.10. With the prints recorded here, we can look back on this over the next week or two and see how the trade plays out.