Correlation Between Nikkei and America

Discussion in 'Trading' started by achilles28, Nov 5, 2008.

  1. achilles28

    achilles28

    Seems the Nikkei follows American markets 100% after big up or down days.

    Seems like free money.

    :p
     
  2. clacy

    clacy

    Seems that way, but I haven't studied it enough to actually confirm it.
     
  3. gnome

    gnome

    The markets are very much, "monkey-see-monkey-do" all around the world.

    Hard to take advantage of it, as most of the pop or drop is discounted on the opening gap.

    When the USSA markets change big, the overseas ETFs traded here already reflect the change before the foreign makets open.
     
  4. This is exactly correct. In fact, large gaps caused by extreme moves in the US market tend to lead to gap-and-range days in the Asian markets, which are actually harder to trade (for me at least) then when the US markets stay within a 1% move.
     
  5. achilles28

    achilles28

    "USSA" :D

    I'm only looking at intraday yahoo charts for the Nikkei, but it usually shows the opening 15 to 30 mins tradeable in US direction.

    Data could be wrong. Yahoo isn't exactly Reuters.


    http://finance.yahoo.com/echarts?s=^N225#chart1:symbol=^n225;range=1d;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
     
  6. achilles28

    achilles28

    How about today?
     
  7. I focus on STW (Taiwan), and it has been a snore fest. It has had a decent range from high to low, but the action is incredibly slow and unmotivated, which is very typical on large gap days. Amazingly I'm finishing with a decent profit. The previous week's action was much nicer when the US was making smaller intraday moves.

    I keep a chart of the Nikkei on my screen and their opening 2 hour session had a 20 tick range... perfect example. Maybe some traders like that action, but it puts me to sleep.
     
  8. morreo

    morreo

    There's actually only about a 60% correlation day to day.
     
  9. achilles28

    achilles28

    Its more on the extremes.

    -/+ 3% or greater DOW, Nikkei responds in kind. That’s just anecdotal.