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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (47480)	7/9/1998 10:12:00 AM
From: Patrick Slevin	Read Replies (1) \| Respond to of 58727

The Cash S&P and the Bond decoupled about a month or so ago. Occasionally they go through periods where they track closely and then diverge. The TYX, having a somewhat inverted chart to the Bond would therefore look a bit like the SPX I guess. I rarely look at TYX to be honest. I think it's when the Bond hits "critical" levels they start to track each other more closely. I never thought much about the Banks vs rates. The Banks had a nice run yesterday; perhaps there is something in what you are pointing out. That's something I will try to remember to ask more informed people than I about. By the way, I have SPU as some sort of end of day reading. Did you mean SPX instead of SPU? I've noticed the Banks have been somewhat in tandem with the SPX over quite some time....over a month. I don't think it's the content of banks in the SPX, rather I think it is recently is being used as a pointer to the supposed health of the market and therefore helps propel the SPX. Just a guess. I never looked at the b/a on the small spoo. In theory it's supposed to track the large spoo. The E-Mini is also driven by the smaller investor, so heavy activity in the large contract "should" decimate a reading taken from the Mini, my thought. If I were trading the SPX I would watch the tracking on the large spoo. To be honest, I try to watch both because sometimes the Cash drives the spoo and sometimes the other way around. I don't know what kind of success the Omega trader is having. Everybody gets a "feel" depending on their own personality. Watching the small spoo for clues to the SPX/SP8M would be anathema to me...I would feel like I was putting the cart before the horse but then I learned this stuff before there was an E-Mini so perhaps you just can't teach an old dog new tricks.