NOOB Question - What moves the emini S&P futures index?

U

UncleJ

I am probably making this more difficult then it should be, but, what makes the emini S&P index go up and down?

Is its price dervived from the larger S&P index which inturn dervives its price from its component stocks? Or, is the mini S&P a seperate entity that moves up and down based soley on supply/demand?

Thank you.
 
like anything else its supply and demand , more buyers then sellers it goes up more sellers then buyers it goes down

but the real truth is they have a giant brass gerbal wheel with tits on the outside that move price

and on any given day either don bright or maverick 74 goes into the wheel and gets it started then the other jumps in and they start the wheel running up

pretty soon don tires out and falls inside the wheel and price starts bouncing around, this is when the market trades sideways, maverick gives don a hand and they get the wheel going in the same direction, a breakout, it goes up for awhile until maverick says something about bob bright , bob jumps on and starts running the wheel in the opposit direction, don joins in and the market thrusts down, maverick tries to tick it up a touch but don throws out the 100 million dollar account card and maverick can't hold up, the bright brothers start the wheel flying in the other direction and maverick is bouncing all over the wheel causing some up and down sideways action, the bright brothers slow the wheel down a little and maverick decides its smart to go their way and the wheel really takes off to the down side

bob jumps off at the bottom, don and maverick make nice and decide to go to dinner and the wheel starts back up
 
So it has nothing to do with the larger S&P index?

Is there anyway to tell future price action by looking at volume in the bid or ask columns of a trading ladder?
 
Some of the movement on the mini contract, at least while the big contract is trading live, is motivated by arbitrage. Often locals will buy .20's on the big and sell .25's on the minis or buy .25's on the minis and sell .30's on the big contract. If the locals do enough volume they can make some easy, practically riskless profits.
 
Quote from Robillard:

Some of the movement on the mini contract, at least while the big contract is trading live, is motivated by arbitrage. Often locals will buy .20's on the big and sell .25's on the minis or buy .25's on the minis and sell .30's on the big contract. If the locals do enough volume they can make some easy, practically riskless profits.
More...

Is there a book or DVD that explains this in more detail?
 
Technically it's not more buyers or more sellers that moves price... there are always an equal amount of both in the futures market... it's more about which side is prepared to cave in at a given price
 
Thought I had a picture of all three on the wheel, but I guess it's just maverick. Anyhow, this is what it's like when all the bigs are gone and you're left holding the bag!

 
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