Although SPY is correlated to S&P 500, one should never look
at the actual S&P500 number and assume SPY. If you look into
the history, the deviation between these two fluctuates, not to
mention SPY has dividends and etc. The liquidity of SPY ensures
that it tracks the MOVEMENT of S&P500 quite accurately, but if
the system was designed based on SPY, then don't look at
S&P500.
All being said, good luck on the exit tomorrow.
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Although SPY is correlated to
SPY correlation to S&P 500
Posted by shinings on 2nd of Jun 2011 at 09:13 pm
Although SPY is correlated to S&P 500, one should never look at the actual S&P500 number and assume SPY. If you look into the history, the deviation between these two fluctuates, not to mention SPY has dividends and etc. The liquidity of SPY ensures that it tracks the MOVEMENT of S&P500 quite accurately, but if the system was designed based on SPY, then don't look at S&P500.
All being said, good luck on the exit tomorrow.