How long have oil futures had such a direct relationship on index futures?

This is a discussion on How long have oil futures had such a direct relationship on index futures? within the Futures & Options forums, part of the Markets category; Hi, I trade ES and have a CL feed. As soon as CL breaks $49/b, $48/b etc on the downside, ...

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Old May 14, 2005, 12:30pm   #1
Joined Mar 2005
How long have oil futures had such a direct relationship on index futures?

Hi,

I trade ES and have a CL feed.

As soon as CL breaks $49/b, $48/b etc on the downside, up goes ES (YM etc).

has it always been like this or is it only since we have entered the $50/b era/post Iraq etc?

Many thanks.
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Old May 16, 2005, 3:59pm   #2
ZDO
Joined Sep 2004
Oil started to have intermittent 'push' in indexes pre Iraq build up. Has steadily increased frequency of being among the daily 'dominant concerns' since then. And yes, even more often and more 'push' anytime CL is over 43

hth
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Old May 16, 2005, 5:26pm   #3
Joined Mar 2005
powerbook started this thread Thanks I am still new to futures and am keen to learn as much as possible.
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Old May 16, 2005, 5:58pm   #4
ZDO
Joined Sep 2004
powerbook,

In that case just ignore CL (unless you are trading it) and focus on the instrument you are trading.
Except for a sample of days, the stock market has actually been just as reactive to news events related (directly or indirectly) to oil and to pundits' articles on threats to supply, etc as it has been to actual CL price changes.
Rule of thumb: By the time a new 'correlate' becomes obvious / known - its real influence is already on the wane... ie milk it, but don't expect it to be a golden teet...

hth

zdo
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