The 7:30am spike?

[andrewbee]

Hi,

I trade the YM, and I noticed that at 7:30 Central time, almost every morning, there is a spike, either up or down. Once it's over, the price trend then usually goes back to what it was doing before.

This is exactly an hour before regular trading hours commence and the stock exchanges open. Anyone know the origin of this spike? A bunch of automated systems all kicking in at the same time perhaps? Does it happen with other e-minis?

Thanks

 

[jeb9999]

How long have you been trading? Do you every read any market news?

Many important news releases happen at 8:30 AM ET. Today was retail sales and tomorrow is CPI. All the markets react to the news.

For upcoming economic news go to http://www.mypivots.com/DeltaT/economic-events.aspx

 

[Bernard111]

it's quite dangerous trading with this little knowledge, my trader....
http://fidweek.econoday.com/

 

[number22]

This is most interest observation from newbie; then leads to this thread.

 

[The Swordsman]

This is a shocking post. I'm hoping you just started trading this week?

Quote from andrewbee:

Hi,

I trade the YM, and I noticed that at 7:30 Central time, almost every morning, there is a spike, either up or down. Once it's over, the price trend then usually goes back to what it was doing before.

This is exactly an hour before regular trading hours commence and the stock exchanges open. Anyone know the origin of this spike? A bunch of automated systems all kicking in at the same time perhaps? Does it happen with other e-minis?

Thanks

 

[andrewbee]

Quote from The Swordsman:

This is a shocking post. I'm hoping you just started trading this week?

Nope. I have a mechanical trading system, and have been trading profitably for almost a year. As such, news is only of passing interest to me.

 

[wiesman02]

Quote from andrewbee:

Nope. I have a mechanical trading system, and have been trading profitably for almost a year. As such, news is only of passing interest to me.

A full year and u dont know anything about news releases ? Holy crap, talk about being out of it !

 

[The Swordsman]

Ok, but it would make sense to know what and when news releases occur so you can make sense of price moves and volitility right?

Quote from andrewbee:

Nope. I have a mechanical trading system, and have been trading profitably for almost a year. As such, news is only of passing interest to me.

 

[bahdabing]

Quote from wiesman02:

A full year and u dont know anything about news releases ? Holy crap, talk about being out of it !

This is either Alex or Cajun--has to be. No one is this out of it except those two.

 

[andrewbee]

Quote from wiesman02:

A full year and u dont know anything about news releases ? Holy crap, talk about being out of it !

Actually, I think not having run over 1 million simulated trading runs with 2 years of tick-level data and progressively refined your algorithms is much more likely to make one "out of it".

Flame me if you wish, but I think statistically reliable patterns of price movement carry much more weight than news.