The Final Frontier - Online Remote Trading Message Board

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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: peter n matzke who wrote (4283)	5/23/1998 1:32:00 PM
From: Temple Williams	Read Replies (1) of 12617

I have been watching an interesting short-term divergence between the Spoos and the E-mini contract for months. So have others, I'm sure. There's a Spoos day trade in here somewhere and I am trying to figure it out. I would appreciate use of the collective brain available on this thread. The Spoos (S&P Futures) stop trading between 9:15 and 9:30 every morning. But the Baby Spoos ... the E-mini contract (1/5 of a "big" contract) ... they trade between 9:15 and 9:30. Back in the 60's and 70's, a lot of us watched Odd Lots to "see" what the "little guy" was doing. I have a feeling that the E-mini trading between 9:15 and 9:30 may represent a "tip-off" of similar magnitude (Odd Lot trading was great 30 years ago, but it does not work very well any more). The point is this: by watching the E-mini action between 9:15 and 9:30 a.m., "da boyz" in the pits must get a feel for what the "little guy" is doing. If I was working the pits, I'd sure look at it closely. Like it or not, the "little guy" is synonymous with "weak hands." It's easy to scare the E-mini buyers and sellers ... it's a slam-dunk to run their stops. Friday morning was not a very good example, because trading was light before the long weekend, but the "weak hands" showed a definite bias to the upside. So what happened? The guy's in the pits picked off the "weak hand" stops by dropping the market from it's spike almost immediately. First, they picked off the E-mini holders with 2-handle trailing stops in the first 4 minutes. Then they ran it back up there and picked off the 3-handle trailing stops between 9:36 and 9:42. These guys are good, and it must be "free" money for them. I'm an old Spoos trader (there are no young ones ... they either die a quick death or get "old" real fast :o) ... Spoos are all I do, and I prefer position trading to day trading. But this is a definite daytrade thing. I'd appreciate any thoughts on a set of rules for scalping this trade. This seems to be the right thread to ask. Thanks. Temple skansearch.com

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