I'm a stock trader and completely baffled by why futures swing up and down so much overnight... any insights? No news or earnings driving price action in the middle of the night. Futs were green a few hours ago, now red. Just curious...
It could be due to India stock market India Nifty just went down massively by 2.7% due to whatever reason. The European market is swinging up and down & there is nothing abnormal. Hangseng gapped down after the long Hong Kong holiday.
Volume is smaller, so manipulating is easier. Overnight session are many times more profitable than RTH sessions. I trade both and I think I make more points ES overnight, but on smaller size as lower volume makes it more difficult to exit sometimes. It is normal and logical that futures went red as there was a sell signal between 1:00 and 2:00 (exchange time). Down about 30 points ES.
sometimes I wonder whether the chart monkeys think about what they are actually trading at all. Why is it so baffling that the moves happen in the timezone that has the triggers? EU - recession, Ukraine War, commodity squeeze...all that happens during the EU - session which is the US overnight session. Next time when sleepy Joe does something stupid or decides to export some democracy, I'm sure all the moves will happen during the US session again
You got the other hemisphere full of people trading crude I'd imagine as well as indexes, currency futs. Go look at a weeks worth of round the clock 5minute charts for CL, ES, AUD, you'll see some days where it gets downright ugly at 9:30 US open compared to the AM action. If you watch your low volume it might be a good way to help with your overtrading issues and make a few more zlotys, lol. You can always sleep when your 'retired'. Jethro trades around the clock all the time. Granny and Jed are Billionaires now. https://www.elitetrader.com/et/threads/trading-chairs.226092/page-12#post-4359151 Max keeps track of what's movin and shakin in the midnite hour over at... https://www.elitetrader.com/et/threads/day-night-trading-derivatives-futures.335584/page-70
Exactly what it is about price change, overnight or any other time, that so baffling and manipulative lol.
Asia opens around 9pm (eastern US time) and Europe around 3 or 4am. These guys trade many of the same big names as the US and have their own issues affecting their views of individual names and macro conditions. Somewhere in Japan right now is the Japanese version of Ken Calhoun sitting there going "why the hell does the Nikkei move so much when it's closed"?
If you spent a couple of hours researching its origins you would likely find that the impetus is supply and demand, or obscure news that causes chaos like the butterfly effect.