3 ms·

Slightly related: what are "big players" more likely to do to get exposure to the S&P directionally: 1. SPY shares long/short on margin/leverage 1. SPY option

Slightly related: what are "big players" more likely to do to get exposure to the S&P directionally: 1. SPY shares long/short on margin/leverage 1. SPY options 1. SPX options 1. /ES e-mini futures 1. a blend of all Does one trump another in popularity?

jleahy 3y ago
ES trumps the others.
- MuffinFlavored 3y ago
  Nice, thanks. I wonder by how much. Here is why I ask: a lot of technical analysis is done on psychological levels related to (in my opinion) SPY strike prices/SPX strike prices/SPX levels. Yet, /ES is typically 20 points ahead of SPX. For example, there can be a battle zone of support/resistance at 4900 on SPX, but /ES blew past it a day ago. I wasn't sure if one had more power/prominence than the other.
  - jleahy 3y ago
    The spread between SPX and ES is purely mechanical. It’s a function of expected future interest rates and dividends over the remaining life of the future. There is no such thing as support/resistance in reality.
    - MuffinFlavored 3y ago
      > There is no such thing as support/resistance in reality. Where would you say 80% of the daily trade volume comes from on average? The powers to be that I can think of: institutional investors / fund managers slowly reallocating (selling stuff off, buying stuff) daily high frequency trading algorithms trading shares back and forth to each other in an artificial way to generate synthetic volume/movement market makers reacting to option chain volume to remain neutral "hedge funds" / "quant funds" running their algorithm what do those algorithms look for at the "minute by minute" scale if not things like support/resistance/patterns/volume?
      - jleahy 3y ago
        In my experience a large % of the daily trade volume comes from me.
nurettin 3y ago
it's usually front month ES, depending on volume. And MES for smaller accounts.
- MuffinFlavored 3y ago
  I'd love to talk to you more. I tried to make a Mastodon account to reach you. I just have questions about how you might know this/what else I could learn from you. I don't trade or anything like that, just interested in learning if you'd like to chat more.
  - nurettin 3y ago
    I don't trade, either. I just code custom data collection, quantity allocation, future roll and automated execution algorithms for certified trading advisors.

jleahy 3y ago

ES trumps the others.

MuffinFlavored 3y ago
Nice, thanks. I wonder by how much. Here is why I ask: a lot of technical analysis is done on psychological levels related to (in my opinion) SPY strike prices/SPX strike prices/SPX levels. Yet, /ES is typically 20 points ahead of SPX. For example, there can be a battle zone of support/resistance at 4900 on SPX, but /ES blew past it a day ago. I wasn't sure if one had more power/prominence than the other.
- jleahy 3y ago
  The spread between SPX and ES is purely mechanical. It’s a function of expected future interest rates and dividends over the remaining life of the future. There is no such thing as support/resistance in reality.
  - MuffinFlavored 3y ago
    > There is no such thing as support/resistance in reality. Where would you say 80% of the daily trade volume comes from on average? The powers to be that I can think of: institutional investors / fund managers slowly reallocating (selling stuff off, buying stuff) daily high frequency trading algorithms trading shares back and forth to each other in an artificial way to generate synthetic volume/movement market makers reacting to option chain volume to remain neutral "hedge funds" / "quant funds" running their algorithm what do those algorithms look for at the "minute by minute" scale if not things like support/resistance/patterns/volume?
    - jleahy 3y ago
      In my experience a large % of the daily trade volume comes from me.

nurettin 3y ago

it's usually front month ES, depending on volume. And MES for smaller accounts.

MuffinFlavored 3y ago
I'd love to talk to you more. I tried to make a Mastodon account to reach you. I just have questions about how you might know this/what else I could learn from you. I don't trade or anything like that, just interested in learning if you'd like to chat more.
- nurettin 3y ago
  I don't trade, either. I just code custom data collection, quantity allocation, future roll and automated execution algorithms for certified trading advisors.