Trading the Index Futures with charts of the cash Index ?

Marsupilami · Sep 3, 2005

I have been doing some paper trading in the last months in the ER2.
I noticed thatThe underlying cash index exhibits less noise, is not as jumpy.
Do you think that one can be succesful with trading the future using the cash index ?

bigbob · Sep 3, 2005

Typically, the exchange supplied quotes of the cash indices are only updated once every 15 seconds. Some are only once a minute. This may be why they seem less jumpy.

Bob

MacroEvent · Sep 3, 2005

watch on a daily basis how the er2 moves in relation to the movement on a nyse tick chart ----

http://www.ttrader.com/mycharts/display.php?p=35903&u=macroevent&a=MacroEvent&id=1511

aPismoClam · Sep 3, 2005

Quote from Marsupilami:

...Do you think that one can be succesful with trading the future using the cash index ?

sure. arbs do it all the time.

Marsupilami · Sep 7, 2005

...where is the Russell 2k cash index calculated ? Is it the NYSE or AMEX ?

Thanks,

Marsupilami

risktaker · Sep 7, 2005

This is like...newbie error 101!

That's virtually impossible. May have worked 4-5 years ago. Not today. At least not for daytrading purposes, anyway.

Quote from Marsupilami:

I have been doing some paper trading in the last months in the ER2.
I noticed thatThe underlying cash index exhibits less noise, is not as jumpy.
Do you think that one can be succesful with trading the future using the cash index ?

risktaker · Sep 7, 2005

No, it's not even close. It's because HALF of the stocks used to calculate $RUT probably trade once every 5 minutes on average!

Quote from bigbob:

Typically, the exchange supplied quotes of the cash indices are only updated once every 15 seconds. Some are only once a minute. This may be why they seem less jumpy.

Bob

gnome · Sep 7, 2005

Quote from Marsupilami:

I have been doing some paper trading in the last months in the ER2.
I noticed thatThe underlying cash index exhibits less noise, is not as jumpy.
Do you think that one can be succesful with trading the future using the cash index ?

Yes! Unless you are trying to scalp (always a fool's errand, imo), you can trade the futures when you get an indication/signal from the cash index.

Futures are leveraged, thinner, jumpy, and tend to overshoot. Trading off of the cash with a proper stop is OK.

Marsupilami · Sep 7, 2005

Quote from Marsupilami:

...where is the Russell 2k cash index calculated ? Is it the NYSE or AMEX ?

Thanks,

Marsupilami

Hi everyone, I appreciate your responses. Now could someone just tell me where the RUT.X is traded ? Which exchange provides the quotes ?
Thanks