Trading the overnight market

S

StevenBruce

I am back to work after a short vacation and wanted to start a thread on the potential that the overnight market holds for index traders.

What I think I will do is post a pic of this evening's trade on news

The background is simple. Clearly it is difficult for the retail trader to make money trading the ES contract in this environment. I suggest looking to the overnight market for trades on news until conditions become more "hospitable".

Here is a link to this evenings chart

http://www.charthub.com/images/2009/09/01/Example_overnight_trade_on_new.png
 
To trade the overnight one should I think line up the following resources

Economic calendar for Europe and Asia
Dax chart
HangSeng & Nikkei Chart

The process requires thinking about comming news and reports and planning for move, either a breakout or breakdown on the news as Asia & Europe react

For the previous chart, we had several news releases just prior to 1:00am PST that affected trading. If you look carefully you can see how price made a lower low and dipped below the 50 period moving average.

References for economic data could be Bloomberg Asia and Forex Factory Economic Calendar for example.

The preferrred strategy is to position just prior to the news release and hold through the reaction to the profit target. Note that the best trades will usually result in a 10 pt move if one is using the ES (globex) contract to trade.

I am going to stop here and think about how to format future comments.

Good luck in the markets
Stevesbg
 
Quote from stevesbg:

I am back to work after a short vacation and wanted to start a thread on the potential that the overnight market holds for index traders.

What I think I will do is post a pic of this evening's trade on news

The background is simple. Clearly it is difficult for the retail trader to make money trading the ES contract in this environment. I suggest looking to the overnight market for trades on news until conditions become more "hospitable".

Here is a link to this evenings chart

http://www.charthub.com/images/2009/09/01/Example_overnight_trade_on_new.png
More...

I have a moment here while my underwear dries in the Sun, after a fresh washing.

I think it is wonderful that you have made your job to descend from "professional trader" Mount Olympus, and instruct us all (measly "retail traders") about the vagaries of the markets and your infinite wisdom.

I see that you have just expanded your trading Universe to trade the overnight Globex. That is wonderful, as many of use waste the overnight session by sleeping.

How each of us "retail traders" uses your priceless input is, of course, up to each of us, but on behalf of all Elite Traders, I wish to thank you for gracing us with your presence.

Ooops. I've got to go to boil my daily cup of white rice for proper nourishment.
 
Quote from stevesbg:



The preferrred strategy is to position just prior to the news release and hold through the reaction to the profit target. Note that the best trades will usually result in a 10 pt move if one is using the ES (globex) contract to trade.

Steve's
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Isn't this kind a suicidal to position just prior to the news?
Or you have a way of doing that because rule of thumb is stay off douring news announcements ......
 
Samiotis

I am sure you have noticed that we have an Internet troll and stalker on board here (Shikantaza). So overnight I have given this some thought and frankly I think you should address your questions to him.....after all, he seems to have all the answers and is anxious to help other traders.

He seems to be a very generous guy. Look at how much time he spends following me around for example.....how many people would do that? If you read his previous posts, I am sure you will be impressed with the depth of his knowledge of trading...So I am going to suggest you direct your question to him and wait for him to answer you.......

Good luck
 
Quote from stevesbg:

Samiotis

I am sure you have noticed that we have an Internet troll and stalker on board here (Shikantaza). So overnight I have given this some thought and frankly I think you should address your questions to him.....after all, he seems to have all the answers and is anxious to help other traders.

He seems to be a very generous guy. Look at how much time he spends following me around for example.....how many people would do that? If you read his previous posts, I am sure you will be impressed with the depth of his knowledge of trading...So I am going to suggest you direct your question to him and wait for him to answer you.......

Good luck
More...

My sincere apologies if I say something stupid as far as (Shikantaza) he is an idiot with the capital (I) most idiots attack intelligence because they don’t have it.

The question is legit, is their a way to know how the news will effect one way or another?
 
Quote from samiotis:

My sincere apologies if I say something stupid as far as (Shikantaza) he is an idiot with the capital (I) most idiots attack intelligence because they don’t have it.

The question is legit, is their a way to know how the news will effect one way or another?
More...

At least shikantaza has the decency of not coming here to make posts about non-sense hindsight calls and ridicoulous claims of fictional trades.

He has yet to issue a cuss word as well.

He is a bit adamant about his white rice, however.
 
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