The Overnight Drift Higher In Index Futures

Discussion in 'Index Futures' started by Roman Candle, May 7, 2009.

  1. Funny how the market didn't budge at all during RTH yesterday and went to the moon once Globex opened.

    I imagine there are certain "rules" and also arbitrage/hedging which put constraints on index futures during the equity session.
     
    #261     Oct 18, 2022
  2. SunTrader

    SunTrader

    Did you look at post#255 I was referencing and see any profits shown?
     
    #262     Oct 18, 2022
  3. SunTrader

    SunTrader

    There are no constraints on arb or hedging during RTH or Globex, not by the exchange at least.

    What would make you think there are?
     
    #263     Oct 18, 2022
  4. Clearly, you didn't read properly what I wrote or understand what I meant. You've done that a few times now.

    Try again and I'll explain if you still don't get it.
     
    #264     Oct 18, 2022
    Relentless likes this.
  5. SunTrader

    SunTrader

    There is arbing and hedging done all the time during any session any day etc.

    As for rules {in quotes} I can only assume since you didn't specify.

    So what was that again about me not understanding?
     
    #265     Oct 18, 2022
  6. The simple answer is that the e-mini S&P 500 does not trade in isolation during the US Equities session where it is arbitraged against the S&P 500 index which it is a derivative of. There's also the huge volume in SPX/ES options to consider which also influences the trading of the e-mini futures. Not to mention that for hedging purposes I imagine the huge volume of the RTH session makes it the prime time window for when to hedge as you can move a lot of volume without impacting price too much.

    As soon as the e-mini futures gets out of whack - arbitrageurs will sell/buy it to close that gap.

    During the overnight session there are no or certainly less such constraints.
     
    #266     Oct 18, 2022
  7. TrAndy2022

    TrAndy2022

    Typical Turnaround Tuesday when sell in May period is ending.
     
    #267     Oct 18, 2022
  8. Ok ready for the overnight rally...Make some money while you sleep.
     
    #268     Oct 18, 2022
  9. Make money while you sleep...so easy.
     
    #269     Oct 18, 2022
  10. Overnight

    Overnight

    On the left side of his pics. The profits look wonky because he's getting split fills and his software doesn't show an average price.

    Looks like the split is floating at 3698.75.
     
    #270     Oct 18, 2022