Big Players "Treading Lightly"?

[tradexpo]

if you go to future months of NQ there is no investor interest in owning the contracts.

it's like a contract exist for daytrading and swing trading only. like a a buckets shop. the contracts don't own any stock or own any QQQ or SPY which the ES and NQ follows.

It's because a lot of ETF have closed and there market ETF is mostly es and nq futures.

A lot investment bank firms have close their market etf, bond etf, and commodity etf due to lack of investor interest and all of them use derivatives like commodity etf or futures, they don't own the individual stocks. they own the ETF like QQQ or ES or NQ

so if you have so many ETF closing...naturally volume decreasees.

besides most individuals don't need the liquidity or size. you need too much margin just to trade one contract of ES..you are actually better off trading stocks between $10-$20 if you have less tha n $5,000 in cash to trade . if stocks were not $2000/share for amazon.

trading ES is only for people with $1,000,000 accounts. as individual stocks don't have the liquidity to daytrade one million dollars.

or $800/share for teslae etc.

but for daytrading you need $30,000 because if you drop below $25,000 you lose your daytrading privilleges.

and if you have like $3000,,you are better off trading penny stocks. under $1.

1.In the ES futures contract...Most of the time now days, the Bid/Ask volume is ~ 100-200 contracts per price on the DOM. I can recall when the market depth was 2000-4000 contracts per price!

2. The NQ futures contract has all but dried up.... averaging ~ 10 contracts per Bid/Ask price during RTH.... and overnight there are literally 1 and 2 contracts bid/offered per price. (Hey.. the NQ is a world-wide market... and there are only 1-sies and 2-sies playing?)

Bottom LIne... "Real Money" is shunning this market for now.

Thin markets are less liquid and therefore more risky.

FWIW...

 

[Scataphagos]

if you go to future months of NQ there is no investor interest in owning the contracts.

it's like a contract exist for daytrading and swing trading only. like a a buckets shop. the contracts don't own any stock or own any QQQ or SPY which the ES and NQ follows.

It's because a lot of ETF have closed and there market ETF is mostly es and nq futures.

A lot investment bank firms have close their market etf, bond etf, and commodity etf due to lack of investor interest and all of them use derivatives like commodity etf or futures, they don't own the individual stocks. they own the ETF like QQQ or ES or NQ

so if you have so many ETF closing...naturally volume decreasees.

besides most individuals don't need the liquidity or size. you need too much margin just to trade one contract of ES..you are actually better off trading stocks between $10-$20 if you have less tha n $5,000 in cash to trade . if stocks were not $2000/share for amazon.

trading ES is only for people with $1,000,000 accounts. as individual stocks don't have the liquidity to daytrade one million dollars.

or $800/share for teslae etc.

but for daytrading you need $30,000 because if you drop below $25,000 you lose your daytrading privilleges.

and if you have like $3000,,you are better off trading penny stocks. under $1.

Amazing. Almost everything you said is wrong.

 

[maxinger]

This happens to many other futures like Germany Dax, gold, crude oil, India Nifty ....

This Big Players ' Treading lightly ' issue has been there for the past few weeks.

When price moved from one level to another level, volume needed to move that much has been reduced by 2 or 3 times.
If your chart is volume based, the effect is obvious ; you ended up with very long candlesticks.
I am sure you will notice this even with time based chart.


India Nifty was interesting. Its bid offer spread increased from around 1 to 2 ticks
to around 10 to 15 ticks !!!! It has since cooled down.


Interestingly, there is not much change to the daily volume.

And what did the exchanges and brokers do ?
They increased the margin by many many times.

Because of this issue, my trading stop loss, volume chart volumes, quantity traded , trading parameters .... have to be adjusted.

 

[heispark]

Perhaps, big boys prefer ETF to Futures these days??

 

[heispark]

Also, it may have some other 'hidden' volume. For example, I see /NG spread trading has much bigger volume than outright /NG contract.

 

[jordi742]

You could buy 5K lots in ES in ten seconds if you are best bid and SPY is ticking down. Just about all of the big traders ICEBERG orders to fill size which is the smart way to go about it.

If stocks on the NYSE are ticking down a 5K lot in the ES is not going to stop that. All of the popular futures trading platforms that are used by big traders and firms have ICEBERG order functionality for good reason. TT, CQG, IB...

Even on the floor in the pit twenty years ago the floor brokers would scale buy or sell for the big firms and funds. And they would also do big blocks with each other and big locals for that matter.

You think so? I think if the price is tanking then yes, it's possible. 1000 lots in five minutes could be possible. 5000....may be in one hour

 

[bone]

Clearly you don’t understand how automated Iceberg orders work.

You think so? I think if the price is tanking then yes, it's possible. 1000 lots in five minutes could be possible. 5000....may be in one hour

 

[murray t turtle]

Amazing. Almost everything you said is wrong.

%%
Amazing/LOL;
QQQ buy volume/price is up nicely for summer;
+ some sell vol/price.....is also LOL.