EURO against Nasdaq, GBP against S&P?

[Wonderduck]

Has anyone done any trading of the Euro or GBP against Nasdaq or S&P 500 ? For instance, the dollar has been down heavily the last few days. This usually coincides with the U.S. stock markets declining. However, they really haven't. Could we just short Euro or GBP futures, and also short NQ or ES?

Thoughts?

thx

 

[Pabst]

Quote from Wonderduck:

Has anyone done any trading of the Euro or GBP against Nasdaq or S&P 500 ? For instance, the dollar has been down heavily the last few days. This usually coincides with the U.S. stock markets declining. However, they really haven't. Could we just short Euro or GBP futures, and also short NQ or ES?

Thoughts?

thx

Did it today. Of all days to have Globex down! The weighting is the hard part. Had it on -2ES vs. -5 EUR, but with the huge volitility in EUR today it was like being short 2 or 3 EUR outright. Got lucky being both overweighted and even more so by finding out an hour ago that I covered my ES at 904.25 when I thought I had cancelled my order going into the outage. It's the first time I've ever been lucky in this kind of situation!

 

[Wonderduck]

Quote from Pabst:



Did it today. Of all days to have Globex down! The weighting is the hard part. Had it on -2ES vs. -5 EUR, but with the huge volitility in EUR today it was like being short 2 or 3 EUR outright. Got lucky being both overweighted and even more so by finding out an hour ago that I covered my ES at 904.25 when I thought I had cancelled my order going into the outage. It's the first time I've ever been lucky in this kind of situation!

How did you come up with 2 ES and 5 EUR? Are you using the 125000 Euro contracts, or the smaller ones?

Thanks again.

 

[Pabst]

Quote from Wonderduck:



How did you come up with 2 ES and 5 EUR? Are you using the 125000 Euro contracts, or the smaller ones?

Thanks again.

Using the big contract. Liquidity is iffy enough in EUR, in the mini it's atrocious. I didn't put this on purposely as a spread "for keeps". I got bearish EUR around 112.45 on that last spike before Globex went down. EUR broke down to around 112.38 as ES rallied above 906. I had an inkling that 906 might be res in ES so I sold 905.75 as a hedge in case a drop in ES would take EUR higher. If things were "normal" and I'd known I was filled buying back the 904.25's I would have covered at least 2 maybe 3 of the EUR at 112.48. But alas I never got the chance. I know the pit EUR got as high as 112.70 a few minutes after Globex went down. I have no pit access so I was freaking. Then as ES started it's rally, the $ exploded. EUR broke 60+ pts in an hour. Unfortunately I couldn't cover and like an ass after the Globex re-open I waited a bit and paid an average of 112.25, .10 worse than where they opened up.

 

[Wonderduck]

Quote from Pabst:



Using the big contract. Liquidity is iffy enough in EUR, in the mini it's atrocious. I didn't put this on purposely as a spread "for keeps". I got bearish EUR around 112.45 on that last spike before Globex went down. EUR broke down to around 112.38 as ES rallied above 906. I had an inkling that 906 might be res in ES so I sold 905.75 as a hedge in case a drop in ES would take EUR higher. If things were "normal" and I'd known I was filled buying back the 904.25's I would have covered at least 2 maybe 3 of the EUR at 112.48. But alas I never got the chance. I know the pit EUR got as high as 112.70 a few minutes after Globex went down. I have no pit access so I was freaking. Then as ES started it's rally, the $ exploded. EUR broke 60+ pts in an hour. Unfortunately I couldn't cover and like an ass after the Globex re-open I waited a bit and paid an average of 112.25, .10 worse than where they opened up.

I see... so definately more as a hedge than a planned spread. Have you thought of (or ever done it) as a spread on purpose? Last week I did it from the long side.. in that case, bought 1 euro and 3 nq.. worked out well... am now short the same, and am a little in the whole... was just wondering what others thought.

Anyway, thanks for your insights.. I appreciate it.