Why have Index Futures been less tradable in the past three weeks

Discussion in 'Index Futures' started by Robertwiz, Aug 22, 2012.

  1. Hello,

    Just wondering,

    Why have Index futures been weak and choppy in the past few weeks compared to June and July which had some nice juicy 500 dollar moves several times a week?

  2. Its referred to as "consolidating the move"
  3. There's nothing we can do. We have to take what the market gives us, be it 1 month, 5 years,10 years or 100 years.
  4. It's called "distribution."
  5. Volume is at at five year low. This time of year (end of summer) is always slow since everyone is on vacation. Excluding last year I do not trade most of August or the holidays at all. If you really want or need to trade, currency markets are very tradable imo. Even though currency market volume is under average as well.

    I made a poll earlier about when volume would come back. it got one star....LOL :) But the only two answers are the beginning of next quarter or next year.
  6. it's been very tradable and profitable for me

    you should append the word "for me" after your statement.
  7. It's very simple, put side by side charts of the VIX or VXX with the Index Futures to see the impact of key changes in volatility to explain the weak and choppy price movements in the Index Futures.

    Still profitable but a little more difficult than June and July as you noted.

    Also, take it a step further, put your profit/loss performance with the above charts to determine if you're method is sensitive or not to those changes in volatility. If so, you now have a great tool to help with your position size management to better manage the increased risk exposure when volatility is low.

    You're Welcome
  8. condythug


    the combination of summer vacations and uncertainty over the euro situation is making things more choppy. with proper money management, this shouldn't be an issue as it should ride over lows and highs over time.
  9. Ever since Knight capital group blew up. That's why

  10. I see some threads have a star rating in the forum

    HOw do I rate a thread for stars? Can only moderators do this? :confused:
    #10     Aug 26, 2012