Yesterday i noticed, how dangerous it might be to hold futures overnight because of Nvidia´s message on facing $5.5 billion charge as US restricts chip sales to China. This message came out after the future market paused between 5pm and 6 pm.
It should be : Yesterday i noticed, how dangerous or profitable it might be to hold futures overnight because of Nvidia´s message .... The tariff on chips news is not a secret news.
Correct. But this message moved the market after hours instead. Conclusion? Despite of trading 23 hours there is a time frame of danger here. But this is not new at all. I only wanted to point out.
Yesterdays move was only 250 in the NDX futures. Overnight maintenance margin is $34000 for 1 NQ and $3400 for 1 MNQ That's 1700 points. Thats the kind of down gap move you should worst case plan when markets are closed. Although it could be even more if some bad black swan event happens
On the opposite side of this situation...the US will start using over night..particularly after the eastern asian markets close.. for pumping fake news and rumors about China. Last night rumors and old reused news was leaked 30 minutes after China/Hong Kong's markets closed about China supposedly folding under pressure and accepting all of Trumps demands. This rumor was leaked as a "damage control'' after the Nvida News was presented. This will start to happen more and more..as a Trump tool. He may reduce his comments about tariffs during NY trading hours and push these comments into Chinese Trading Hours as a pressure tool. And then just after Chinese/Hong Kong markets close..ES can be easily manipulated upward because of low volume..