Do you want to know why the S&P, Naz and the Dow move after/before hours? It's because the "heavily weighted stocks" are being traded. Watch those stocks and you'll see the indices move too.
Is there really a lot of trading of ES or NQ that is worth doing after hours? Isn't a lot better to just trade the ESTX50, other European issues and FX?
There is a lot of ES and NQ money to be made on large afterhours swings. Many companies report after 4PM NY time and as World events unfold there is additional volatility. The climate changes 24/7. Try logging on and watching. If you do not have a trading platform, then you can see the price swings 24/7 on Bloomberg TV real time for free.
Hi, Although I don't trade the e-minis, I get esignal realtime data and it seems to me that the vast majority of the volatility is during normal US market hours (or maybe 15 minutes past). Sometimes there is volatility outside of that time, but it seems to me that time spent watching the evening session does not offer enough opportunities to make it worthwhile. Also, the liquidity seems to really drop off in the evening session. Am I missing something? Thanks
I only trade the ES at night (just started the DAX) and have been doing so since December. It was a slow process of learning what was going on at night and why. The one reason I switched from trading days to nights is because of the TRENDS. Catching a trend is where the money is made. Once I figured out how to trade this at night my consistency and profit went up. Basically the night is divided into "two sessions" (as I call them): First Session: When Globex re-opens at 4:45pm EST until 1am Transition: 1am to 3am window between the two. (There is a 1-2 hour window between the two sessions that many times forms a tight channel as the first session transitions into the second.) Second Session: When Europe opens at 3am and until 6:30 to 7:30am. Generally, the first session has a 3-5 point range and the second session has twice the range. I'm trying to capture the big 8-12 point moves that consistently happen at night. For the first session I set up a channel after Globex re-opens and I'm looking for a break one way or the other. I get a feel for how the market closed, how the TICKS closed, afterhours news, or earnings on major companies and then make my play. The Nikkei opens at 7:45pm and gives the next clue towards direction. I also am watching the GC contract (gold) for my contra indicator and the US Dollar index. Usually there will be a small 3-4 point move during the first few hours, a sideways base as we transition into Europe and then a continuation of the trend or complete reversal. The second session is where the points are made, but you have to be up in the middle of the night. So, to combat this I use many alarms at pivot points and use stops for getting me into and out of trades. Again, I set up a channel (the prior two hour transition period) and place my buy and sell stops. I am always up when Europe opens and for small time periods at other times of the night. I set my watch alarm, get up and look for 5-30 minutes and then go back to sleep. I do not sit and watch the screen like I did during the day. It is very SLOW at night and you have to have patience! It might take 1-2 hours to grind out a point or two. I have many nights where I get the direction right and then just exit the trade around 6:30-7am for a very nice profit. I have found that most of my trades are exited around this time as the trends come to an end or pause as we now are transitioning to the day. At 3am the dig daddy of Europe opens- the DAX. The Paris CAC and London FTSE along with the Swiss market open at this time. These markets are very "trendy" and the ES will follow along for the ride. By the same token if the ES is in a strong trend when these markets open they just continue what the ES has started. I think the best advice I can give is to just watch the night market for a month. You need to get a feel for the ebb and flow of the worlds markets as the sun brings a new day to these regions
Soho , Thanks for sharing . Obviously , you found something that works for you ... I have to wonder why you stop trading when you do . Are you set up to trade the low volume or is that you find it less taxing on your nerves ? Either way , it's good you found a fit . ps - They tell me that losing sleep isn't good for a person . I'm sure all of us would be interested to see how you hold up over time . If you would , post from time to time and let us know how you and your system are doing . Thanks again and the best to you . pd .