Something is fishy in the overnight session

Discussion in 'Index Futures' started by nitro, Feb 22, 2004.

  1. nitro

    nitro

    Tripack,

    [I completly missed your post - sorry for the delayed response.]

    Thanks for the complement. Unfortunately, I did not have the ND up on my screen at that time. I will be more careful next time. Perhaps I am not as astute as I should be :(

    nitro
     
    #21     Feb 23, 2004
  2. That's something new to me - anyone who knows something about auto-quoting willing to share?

    I always figured that the big boys don't care about the overnight session before London opens since there is so little liquidity. Guess I might be wrong!
     
    #22     Feb 24, 2004
  3. nitro

    nitro

    Autoquoting just means that "Market Makers" are using some software with some sort of model that will automatically make a market in a given underlying.

    Options MM do this all the time, and during the regular hour where the underlying's cash market is open, this happens in nearly all electronic markets.

    nitro
     
    #23     Feb 24, 2004
  4. I don't watch the overnight much, but what comes to mind is: If you don't trade then there's no one to rob. So the movement could well be the any port in a storm theory of market making. They'll take any trade, cause they figure they'll cover it cheaper somewhere from someone, real soon.

    Or maybe not :D
     
    #24     Feb 28, 2004
  5. ok boy's ready for tomorrow's nights circus of openings in the NQ big top?

    Michael B.
     
    #25     Feb 28, 2004
  6. There are two explanations for this one is annoying and the other is sinister. First the annoying one, people posting orders hoping to move the the market one way or the other and then canceling the orders after the legal required timelimit (I think it is two minutes but don't quote me on that one). When the market is really thin they know that that the oldest orders will get filled first so if there are 3 b and 4 ask and they want to dump some contracts they will increase the bids from a different account than the one that they are selling from. They know that by the time those 3b's get a fill they can cancel their order. Suddenly you will see 29 bid and 4 ask, it looks like the price action is going up for sure, and sadly lots of people take the bait, only to fine that demand wasn't so uneven after all. The sinster answer is that criminals out there are manipulating either the data, or the orders to prevent fills at the proper price. It would take some doing but it is something I've often wondered about as I work the night shift and follow these contracts when they are really thin. Basically when the action is really thin I don't pay attention to the B/A activity because there is so many fake orders thrown into the mix.
     
    #26     Feb 29, 2004
  7. to any legal time limit for cme e minis ?

     
    #27     Feb 29, 2004
  8. Uh gee I think it is at cftc.gov if memory serves me.
     
    #28     Feb 29, 2004