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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: The Freep who wrote (19789)	11/7/2001 7:31:24 AM
From: UnBelievable	Respond to of 209892

Night Moves The Futures at night are a thing of beauty. They have their own rhythm and purpose. For a while I used to stay up all night to watch them. Sometimes I think their is more easier money to be made on the night shift. But alas it can be boring because usually very little happens. In general I have observed the following: 4:45 - 6:30 Support AH stock trading 6:30 - 8:00 Relieve a bit of the pressure 8:00 - 2:00 Support and Respond to N225 (1:00 Eastern DST) 2:00 - 4:00 Dirty Deeds - Run the stops of any traders foolish enough to hold overnight 4:00 - 9:15 RTH Get Ready What happens in each of these stages depends on what happened the prior day and how they are trying to position for the following. Since there are generally a lot fewer contracts being traded the trading is both slower and there are a lot fewer contracts on the bid and the ask it is easier to follow as well. Amazing how frequently sales go off on the side with the greater interest (Bid 34 / 1140 at Ask 2/1140.5 Trade 1140). I think it is safe to say that if anything the numbers on contracts on the bid and the ask are usually dis-information. BTW I have found this to be true both looking at market depth information as well. One other interesting part is there really is not much else to going on which influences the market or which you can follow to get information about likely moves. During the day I look at 4 cash indices and a number of specific stocks to feel how the market is trading. There really is nothing like that at night. You trade based on pure TA and by thinking like a criminal. While the Overnight high and low frequently get tested the next day during RTH I don't know that there is a lot of information in the night moves - some for sure - but enough to stay up all night probably not. Overall I found it quite interesting when it was not putting me to sleep.

To: The Freep who wrote (19789)	11/7/2001 7:33:45 AM
From: bcrafty	Respond to of 209892

Freep, about your futures questions Are these swings common? Yes. They could be a reaction to AH movement in a stock of interest (eg. QCOM last night, CSCO Monday night) or a reaction to activity overseas for instance. Do these types of moves usually correct by open? Sometimes, but I wouldn't say usually. It can depend on the nature of whatever news caused them to react that way in the first place, and it can depend on whether or not something else happens before open that may correct the prior movement. Last night futures fell after QCOM reported, something not considered unusual. Later they fell further, presumably in response to a falling Nikkei. I read on cbsmarketwatch that the fall in the Nikkei had to do with concerns about bad loans made by the banking industry and the government not doing enough to address the issue. Otherwise, I have no clue why the futures are currently where they are. As I type the NQ is down 20.

To: The Freep who wrote (19789)	11/7/2001 8:20:12 AM
From: AllansAlias	Read Replies (1) \| Respond to of 209892

It is very rare that Rydex traders buy the dip or fade the pop. What one watches is the rate at which they unwind their positions. Do they lead the market in unwinding short positions when the market rises? Do they lead the market in unwinding long positions when the market declines? These tell you something about their level of complacency or fear.