.. with HSI or NKD? I find it hard for couple reasons: 1. Liquidity is tradeable but usually below average. 2. U.S. nightime trading's not available when intraday volatility in cash market is HUGE. I was up and down 4K last night and lucky to break even this morning. 3. Relatively high overnight margin and zero intraday margin. 4. No stop limit on the HSI?? Still, the futures over/under-react to U.S. markets alot, creating a follow through arb. opportunity.
I agree liquidity is tradeable but for those who are used to trading ES and NQ, they might find hsi liquidity not to their liking. I trade HSI because it is within my time zone. After first observing it for two months, one important rule I strictly follow is never take countertrend trades when it is trending. A good example of what catching a falling knife means.
Yup, you are right. never fight the trend or you will get killed by it. Oil price jumped about to 40 / brl. Will it effect the HSI price, especially those which related to oil. Any possibility a bull this coming Monday?
I don't predict what the market will do. Instead, I let the market show me what it wants to do and go with the flow. However, I take into account what the U.S. markets did the previous day because more often than not it may influence HSI trading for the day, unless there's a significant local/regional event like the recent Taiwan election, SARS outbreak, local giant companies (like HSBC) earnings report, etc. JMHO. But then again, the market's action will tell you what it wants to do.
So how to see that? Recent unemploment rate of U.S. has dropped for 2 months straight down. Think this will cause the Fed to add the rate pretty soon (many people see, it will be as soon as June). As the the strong growth of U.S. 's economy, think the demand of oil will be increase too. Yet the oil price has closed at US$40 / brl and the supply from Mid East is still an unknown. Will it damped the market on Monday? Anyway, Mr. Rubbles, where are you come from? Nice to discuss with you. Mr. Mind too.