Kudos to MMs
- Thread starter nitro
- Start date
There is a disconnect between SPX and ES that should average over time, I hope. Even though I exited ES at 1190 which was +2 at the time, and then transfered to SPX at the same time to 1193.30, look at the attached img that shows a realtime ES feed and SPX. The cash is much slushier than the futures, and this distorts actual performance...
Interesting observation, and one that occurred to me as well. The difference is that I understand better why this happens, and it is explained in a post this past Sunday.
The thing is, just like the Universe can be created from nothing as long as the total energy content of it is zero, I can see how this happens in markets too, but I don't see the opposing countering effect, at least not in equilibrium! That is my problem, and hence I am led to believe that there is no conservation in markets, at least not at the scales of even years. Decades maybe. Perhaps that is where the term, "Markets can stay irrational longer than you can stay solvent" comes from - no can tolerate the time frames in which people go insane and blind themselves to foolish theories.
The entire US system of professionals that run it is based on curve fitting and instant gratification. Fix it now, worry about the consequences later. If there are any programmers reading this, this is like some Cobol program with 10 million line of codes with thousands of goto statements that is crashing all the time, and you have to keep it running. The answer is to scrap it and start over. But the pain in that is politically impossible.
Yes. You would be surprised at the scope of what NFV takes into consideration. Pretty much anything that can move a market and gives it "value".
The key is as I state in the post above and in another one recently, is, when a term gets shifted to the other side of the equal sign, does it's net effect equal zero? The answer appears to be, no, on "short" time frames, and I mean short by investment terms, not trading terms.