dax scalping

Discussion in 'Index Futures' started by sides7, Jan 29, 2005.

  1. sides7


    wondering if anyone knows what is going on with the dax. i thought december was a pretty good month with decent follow through in both directions especially on the highs and lows. although i feel january has been terrible with head fakes and news highs and lows by a tick and then slams back the other way.

    the dax has not been skipping prices either where the bids or offers get pulled. also i have noticed that the correlation with the euro stocks is less relevant. normally when big orders go off in the the euro stocks the dax follows accordingly. but latley a 500 lot will go off and then another in the euro stocks and the dax will barely move. what is the story. frustrating. anyone know anything. i heard the banks are just trying to keep it in a tight range. is any one still actively trading this thing. even off the open at 2am chicago time it has been generally slow
  2. Yes, I have noticed the same things. The volatility has been sucked out of it. It seems sometimes like the FESX has more volatility despite the liquidity than the DAX. I have had to cut back dramatically on my size and volume.

    I am also interested in thoughts about this, but I'm not too concerned. Markets go through cycles and the underlying for the DAX have also been less volatile.
  3. HSI= the new dax

    DAX= the new eurostoxx

    ihmo at least

    things to look at in the intermediate term horizon: titan italian index futs....well see how they go....

    right now, for a scalper...er2 is the place to be it seems...HS looks to be too, but i havent personaly traded it, i have a frind who does and he seems to love it...
  4. What is interesting is if we have an unexpected breakout, the dax goes back to looking the way it did 2 yrs ago. I twould appear to me that there is a lot of spoofing.

    The reason I don't think it is like the Stoxx yet is the fact that traded daily or weekly volume hasn't gone up as fast as the apparent liquidity in the DOM. The book is a lot thicker. It is not as clean.

    On the other hand, I see the same things in the ES, YM, NQ and even the ER2. The ER2 doesn't pop much at all any more.

    As always, it is always time to keep looking and to move to something else.
  5. i dont think dax is there YET, but looks like it may on that path(this seems to be MUCH like what the stoxx did on their route to maturity)...i think er2 is more fertile scalping ground than dax ATM personally...do you have any thoughts on HS?
  6. I have read and follow the HSI thread here. I haven't looked at the book myself. It sounds like it is an explosive product, but its cost/liquidity/volatility combination is not for my group's style. Also, there is the issue of latency to the exchange since it is so far away.

    There are some interesting products coming like the Jumbo 2 yr contract on Eurex US. I don't know if it will pull in participants or not, but that seems interesting for just 5 cents per turn plus commish.

    I am certain that other products will come. There are many groups who scalp the way we do and our volume cannot be ignored. I think exchanges will always try to attract active traders.

    Have you had a look at the HSI book?
  7. With the real-time or near real time quotes now in the Dax as opposed to the snapshot quotes of the past it allows more black boxes to put on the index that do arbs between the the euro stoxx and the cac and the underlyings. Before no one had a real view of what size was available at each price level, now that they do they can run their black boxes since they what they can get off at each price. This sucks the volatility out of the market.
  8. Yeah.... that makes sense. Funny to think that I was actually looking forward to the quicker quotes and the update to Eurex 7.0. Now, I know better. After the upgrade, the manager here at Eurex said that they had been putting it off because they thought traders wanted the pulse. I thought that was crazy, but here we are...... :(
  9. When the moves come the liquidity still dries up. While the DAX may no longer act like a bipolar she-cat it still has the most bang for your buck of the major world indices in my opinion.
  10. Yes, I agree with you there. As long as the Euro stays above par with the dollar and the volatility doesn't continue to drop drastically, it is going to continue to be my main product to trade.

    Have you set up the HSI yet? If so, how is that going? What is your opinion? Can you compare it to the DAX as far as breakout highs or lows?
    #10     Jan 29, 2005