After hours emini trading

Discussion in 'Index Futures' started by sptraderj, Apr 7, 2003.

  1. Bravo SOHO...very informative...I trade the SPY during the U.S trading day and have been considering the e-mini for overseas market trends and macro-economic events....will be watching...please share some more wisdom if you dont mind.

    #21     Apr 18, 2003
  2. JT47319


    I definitely see what Soho is talking about. On those rare times that I've been motiviated to wake up at 4AM to trade, I've been able to catch a few good swings. Another thing to consider is that it seems that if the e-minis & epremium rise too much (without news) then it will eventually drift back down to roughly where the S&P500 closed last.

    Call it the "premium gap." If MB Trading had 24 hours trading, one could conceivably "fade" the gap.
    #22     Apr 18, 2003
  3. trader3


    Just wondering, why not trade the EUREX when it opens instead of the ES in the middle of the night?
    #23     Apr 18, 2003
  4. soho


    Thanks for the kind words everyone. I try to follow some of the posts here a couple of times a week and this thread caught my eye. I have been working nights for almost 20 years. It is like a fireman's schedule as I only work 7 days out of 14. This gives me alot of time to trade when I am off. I am used to the night schedule and have lived and worked this way for so long I have forgotten what a real life is like. Yes, I do believe it is taxing, but some of you should be able to make it work. If I had to suggest two times it would be the hour after Globex re-opens and try for 2-3 points. Put a trade on and then enjoy the rest of your evening. Have your target and stoploss orders in, alarms set (with speaker vol up high so you will be notified anywhere in your house) and forget about it. I usually try to get out of this trade just before 11pm. The reason for this is Globex is closed from 11-12am. The second time would be 3:15 to 3:45am. Wake up to see if there is a play now that Europe is open.

    Trader3 asked why not trade one of the Eurex products instead. I am starting the DAX and looking at the German bonds, but will always trade the ES. I study all the charts from the day and gather all the news from the US markets on a daily basis. I am more in tune with the ES having traded it both during the day and night. I feel I will have more success with the DAX by watching the events leading up to it's open- mainly the close of the US markets, the Nikkei open and the movement of the ES during Globex. I think both the ES and DAX are great on their own, but they compliment each other and both should be traded. (Much like the NQ and ES do during the day.)

    PDcomm- I do find it less taxing on my nerves. I really enjoy the pace at night. Don't believe what everyone tells you that it is illiquid and not worth trading. There are 10 point moves all the time, I don't have slippage on my stops and you don't have all the ridiculous head fakes and jerky moves like during the day. I think trading at night came about as a change in my lifestyle. I used to trade during the day, every day, and I never saw my family and I was so tired and worn out. I worked nights and traded during the day- where's the time for the important things in life like my wife and son, my friends and family? My days are completely free and I really enjoy it. If I do trade during the day it is just an extension of my night trade. For example the night session has been trending down and usually between 6:30 and 8:00 it will pop up to a small higher low. This will be the high for the day and is my stop. I stay in the trade and just see what else I can get. Sometimes I have not been able to trade because of work, but when I get home I will put this play on and short this little pop.

    Spreadem makes an excellent point about watching how the big stocks are trading afterhours. I always watch the NQ and YM (mini DOW) during the night. I use these for confirmation of the trend. I really like watching the YM after the market closes at 4pm for 45 minutes as the ES and NQ are closed but the YM is open for trading. This shows in a nutshell if the big stocks are moving up or down like Spreadem suggested. Now when the ES and NQ open I have a clue to direction.
    #24     Apr 18, 2003
  5. soho


    I forgot to respond to this in my last post. Great point JT...I have EPREM up during the day , but never looked at it during any other time. I will have to look at this- thanks for the tip!
    #25     Apr 18, 2003
  6. JT47319


    I think this works if there is no news, as in there's no reason for the underlying S&P500 cash to gap up excessively. The spoos may influence the cash to gap up a little, but not to the extremes that I've sometimes (not always) seen them at night.

    I think the typical e/premium is actually something like -0.75 (there's a website for this info) and I've seen it well into the positive territory at night. When it enters a reversal period (of which you are familiar with, I was actually trying to find info on this to see if there were reversal periods at night, thanks for the info!) then you see that the minis slowly revert back down.

    This doesn't work on war news because you don't know what the hell the S&P is going to be at in the morning though you could try and "scalp" the "premium gap" and since we're in earnings season it may be hard to take advantage of this as well. Of course, scalping at night means about 4-hours of waiting :)
    #26     Apr 18, 2003
    #27     Jul 24, 2003
  8. I would also add, I have successfully picked up a few points after hours. I only will do this when I am at my computer for another reason.

    I use my divergence system, just reduce the time frame to 15 ticks and look for 2 points. It is actually very responsive to my technicals.
    #28     Jul 24, 2003
  9. Anyone else trading the ES overnight?

    #29     Oct 12, 2003
  10. yeah, it's at a 3 pt premium as we speak after a very fishy close on Fri and today being sort of holiday kind of. You gotta wonder, who's gonna come in on the open and buy? and if they do, they need to drive up the cash about 4 to five full points to get back to fair value.

    But then again, whose gonna sell?
    #30     Oct 12, 2003