There’s an interesting divergence between the QQQ and NDX today, but I think it’s actually because of what happened yesterday. Those two instruments track the same stocks, but yesterday the NDX was down 2.97% while the QQQ was down 3.94%. So it looks like some arbitrageurs have stepped in today to snatch a nice quick profit. As I write this the QQQ is up about 0.5% while the NDX is down 1%. How could this happen? My guess is that there was a bit of panic in the QQQ yesterday and it just got pushed down too far. This was free money for those quick enough to catch it. Reminds me of an old saying: “If there’s money on the table it belongs to whoever picks it up.”
Update: Forget everything I just said. BJM gives the reason for the difference in the comments of this post: “Perhaps different closing times?
NDX takes the 4:00 close. The QQQ’s trade till 4:15….”
Perhaps different closing times?
NDX takes the 4:00 close. The QQQ’s trade till 4:15. When CSCO released last night at 4:10 they crushed the futures mkt as well as DIA’s SPYs and QQQ’s. Thats why on the open, SPA futures were up 2 and the cash SPX was down 2.
Ah, good catch.