How to hedge for the opening?

Discussion in 'Trading' started by cunparis, Oct 24, 2008.

  1. I'm long ES. How can I hedge against a big drop?

    Can I go long yen? Or is it too late?

    Anything else? Both oil & gold turned up when ES went limit down. I'm wondering if they'll follow through.
     
  2. Is TF trading? If so sell some. (it is Russell 2000). It may be too late though.
     
  3. Yen and Euro already reflect the selloff :(

    "best" scenario I see is buy more on the way up, if we have a bounce in the middle of the day....

    I see no good soutions
     
  4. SPY is trading down around 8.37%, that is the best indication u have as to where futures will re-open
     
  5. That's what I did yesterday, but bought it back.

    What's weird is TF started going up at 9am. Someone knew the market was headed upward. :)

    So I added a long on TF just for fun. :)
    Oil too.
     
  6. To update the thread, I hedged my long ES position with shorts for YM & TF.

    TF is the weakest, and YM the strongest. Normally I'd short the weakest but I figure this gives me less risk.

    I'm not sure I shouldn't have just sold my ES long position but I think it's much easier to keep track of this way because I will try to get a profit on my hedge positions.

    Does it make sense?