Yes that is correct Its an ETF based on the S&P 500 and therefore tradable. Im looking for an equivalent of the ASX ( I suppose an ETF then follows the ASX200) My reason for this is then you can see the volume that is traded on particular market moves of that ETF and would then paint a picture better of what the market sentiment is.
Eg If I saw a decent drop in these today in any given instrument / symbol or stock I would then look into why. Was it dropping hard on little volume or hard on lots of Volume. This in turn tell me first that the pause or drop is because
A) it dropped a long way on low volume though , therefore just a knee jerk reaction to someone bailing out so I will stay in or posibly buy in if its low it its cycle.
or
B) Wow that dropped hard on medium volume, I dont think I will buy in (again referencing where it is on its cycle). I will wait and see if it has further to fall
or
C) It dropped hard on massive Volume, It may have been warranted for it to drop, however it caused the flood gates to open and sold of to heavey. I might buy in (again with reference to where it is in its cycle)
Looking at the ASX and the points it moves isnt a good indicator of where it will go and what the market is thinking right now.
EG the last 2 days (inc today) the market has paused. Now I know why with 70% certainty however my conviction would be much better if I knew the volume being traded on let say, an ETF thats reflecting the ASX200. Then I could look at it and say:
1) The price of the ETF (lets call it the ASX200 ETF) is not moving really and with no volume, because it has hit a MOving Average or a $ resistance/Support or a Trend Line and the market has paused to see which way the other guy is going to go (hence has it got more in the tank)
or
2) The price of the ASX200 ETF has stalled though with loads of of Volume. Another words its going to be an explosive move when one side of the trade gives up or is beaten. (Very volitile situation) Maybe Ill stay out of adding to that winning position im in until it gives me better conviction. Or maybe your a gambler 50/50 odds right. Depends on what your try to acheive.
I hope you can see why im very interested in an ETF ASX 200 insturment. Just knowing a stock. has good books isnt enough for me. I want to know the market sentiment (not what the media hype up) but what the market is really feeling.
Right now as Im sure you will all be asking; Is this the bottom or is there more left in the Tank
Market sentiment Rules not fundamentals or Technicals.
You have all seen great companies that are profitable beaten down when they shouldnt and companies exploding up when there not even close to profitability.
It takes Market Sentiment, Technicals & Fundamentals all together to give the best chance of success.
So let me know if anyone knows of anything we can trade reflecting the asx200. I think I will right my broker :)