Playing the Numbers

What's the best way to take advantage of these quick price movements after economic numbers? Like, this afternoon the ES spiked to 1038.50 and then went down to 1034.50 after the FOMC meeting.

Would it work out if one went long on ES and shorted the equivalent in NQ as a hedge before the announcement?

Post some ideas!

-Fast

 

Not as applicable for Greenspan, but for the other economic numbers, such as Michigan sentiment, you can sign up for the direct announcement from the source as opposed to waiting for it to be broadcast on CNBC or Reuters. Interviewed at a firm in Chicago, Resource Trading Group (mainly trade European markets) and they have like 100 guys sitting there scalping small, but about 300 trades a day. I was there when they announced Michigan sentiment, and they had that info (legally) about 30 seconds before CNBC announced it or it hit the tape. It's expensive, but it is an option.

Vega

 

Would it be cheaper to just go long ES and short NQ

-Fast

 

Cheaper ?????????

Yeah sure, assuming you make more on the ES than you lose on the NQ

Vega

I know, that doesn't help.

 

Vega, the idea is to play the fast up/down moves and to preferrably exit both positions for profit

-Fast

 

Afer the FOMC, trade from a fast tick chart, the moves happen so fast that they will vanish on x min chart

 

So if the markets rally, you sell of the long ES side, and on the pull back buy the NQ ? Interesting, but I think it's 50/50 on guessing which will move more, seems to me like you may be better off just fading the first move and covering on the pull back. Definitely appealing, but then you're potentially giving up 4 bid/asks on one trade.

Vega

 

wow you are too fast for me Fast trader....the "fed play" is a specialized move....good on ya if you can do it fading a bunch of moves...I havent found it cost effective of late.......today was such a tight range in ES...the laggard all day till it slowly picked up steam then flew......DAX and SOX definitely led the way.......I ignored the fed call and just traded around a long position in NQ.....figuring it would eventually catch up to sox.....

 

ya u get the report 30 secs before........ and? LOL. what is traded is not report itself but market's reaction to the report.

 

That's all that you're ever trading anyway.