Hi,
Here I am trying to learn this and that in Technical Analysis, while I feel like there are some basic questions I must have answers to first (maybe putting the carriage in front of the horses).
I am at the beginning of my second of three Richard Ney books. Fascinating stuff.
Who, if anybody, marks up and down the price in E-minis, since there is supposedly no specialist trading with his accounts) interests involved? From the CME manual I read: "There are also products, such as the CME E-mini stock index contracts, that trade only electronically and never via open outcry."
Then, if I understand Tom Willams correctly, the cash market leads the futures. But in the S&P 500 "cash" market there are 'specialists,' so in the end is the ES marked up/down by their interests? Which leads me to this question: what does S&P "cash" mean? How does the S&P 500 "cash" value move up and down? It's the performance of the 'specalist-manipulated' stocks that make up the index right?
I would appreciate help from anybody on this. I know some of the folks in the
VSA thread are familiar with Ney, Wyckoff, Willias writings and their answers would be appreciated.
Thank you,
Bert
P.S. The use of the word "specialist" is what I understand Ney's is: to describe the specialist on the exchange floor that has no regard for true supply & demand and marks the price up & down, sells short, etc., all with the purpose of putting money in his account(s).