Australian (ASX) Stock Market Forum

Trading The SPI - NON-Gann Techniques

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skyQuake said:
Hi all, new to the forum but not to the index. I see theres a few fellow cfd traders around here too.
I've been thinking of trading the SPI for a while rather than the CFDs, and Im just wondering about brokerage/interest(?) costs.
I know CFDs charge you interest if you hold overnight, but does that apply to the SPI as well? What happens if I hold a month (ignoring margin call costs)
Thanks in advance!
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hi skyQuake, welcome to ASF:)

Brokerage varies alot, depending on who you use. I use interactive brokers, and pay $5 per side per contract. You don't pay interest directly on futures in the way you do with CFD's, but there is the cost of carry to take into consideration for futures.
 
Edwood said:
looking a bit like a wave 4 here, so potential for more upside, all dependent on the US tho... am flat for now, will wait for a move either way
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thank gawd its made up its mind - have decided I hate 4's. always best to be flat imo when you get into those tight consolidations.

I guess I could have used an OCO - anyone got any tricks that they use when it gets tight like that?
 
Edwood said:
thank gawd its made up its mind - have decided I hate 4's. always best to be flat imo when you get into those tight consolidations.

I guess I could have used an OCO - anyone got any tricks that they use when it gets tight like that?
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an OCO:confused:

I agree that flat has been the way to go for swings recently. Still looks to have been some nice intraday swings though.
 
Edwood said:
Hi Prof - one cancels the other (OCO)

http://www.traderslog.com/One-Cancels-Other-Order.htm

yes got some swings out of it but should have been prepared for the break out. still, if in doubt better to be out
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Gotcha. Wasn't sure if you were talking about orders, or indicators, or what!

Probably would have been best when looking for a break of this situation, though it hadn't really run hard enough to get me looking for shorting opportunities.....yet:)

Think the break today might good for semi decent run over the next few sessions- 6300 or so me thinks
 
professor_frink said:
Gotcha. Wasn't sure if you were talking about orders, or indicators, or what!

Probably would have been best when looking for a break of this situation, though it hadn't really run hard enough to get me looking for shorting opportunities.....yet:)

Think the break today might good for semi decent run over the next few sessions- 6300 or so me thinks
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aye same here Prof no shorts for me from here for a bit - unless we see a big outside day....

for the OCO I guess buy stop above the congestion and short limit below which would have me long now. not very helpful in hindsight mind!! :D
 
Edwood said:
aye same here Prof no shorts for me from here for a bit - unless we see a big outside day....

for the OCO I guess buy stop above the congestion and short limit below which would have me long now. not very helpful in hindsight mind!! :D
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It's always good to know it would have worked in hindsight:D

Our market is looking a whole lot healthier than some of the other Asian markets presently- nik is getting sold off once again today, and is still a long way off the feb highs(about 1000 points or so).
 
interesting divergence & worth keeping an eye on, thanks for highlighting that Prof!

is it right that China is closed this week?
 
Edwood said:
interesting divergence & worth keeping an eye on, thanks for highlighting that Prof!

is it right that China is closed this week?
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Dunno. Might be. Hong Kong was shut yesterday. But according to my calendar, should be open today. No trading in Japan tom or Friday too.
 
Thanks for the reply professor :)
I assume the cost of carry for the SPI will be the base interest rate + a few pts?
Sa with interactive brokers, if I hold a contract for a week, how much interest would be charged?
Many thanks
 
Also fwiw, I think the SPI is running into some resistance now. Small short here possible.
 
skyQuake said:
Thanks for the reply professor :)
I assume the cost of carry for the SPI will be the base interest rate + a few pts?
Sa with interactive brokers, if I hold a contract for a week, how much interest would be charged?
Many thanks
Click to expand...

Cost of carry is relected in the price, so you don't have to pay interest as such.
Because I'm not holding for months at a time, it's something I don't really pay much attention to, I'm more concerned with where the market is going, so the following comments may need to be verified by someone else-

SPI = current XJO price + cost of carry.

cost of carry = XJO x(interest rate - dividend yield x days till expiry).

I don't think it's 100% necessary to know exactly where fair value for the spi is all the time, if you are simply taking a directional position on the market. It shouldn't make too much of a difference to your bottom line, unless you are holding for months at a time.

If you are long, and the XJO goes up 100 points, then you'll make pretty well that on a futures trade.

skyQuake said:
Also fwiw, I think the SPI is running into some resistance now. Small short here possible.
Click to expand...

Yep, I have a cluster of pivots sitting between 36 and 42 FWIW. Wouldn't be opening an intraday long here:)
 
professor_frink said:
Dunno. Might be. Hong Kong was shut yesterday. But according to my calendar, should be open today. No trading in Japan tom or Friday too.
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Shanghai is closed all week, its May holiday here. I'm typing this while touring around a bit. We're in Dandong tonite, a city with the river between it and Nth.Korea. Quite a site too, this side is booming, and the other side is black with only a few lights visable, spooky...and sad.

Had a nice Nth. Korean meal tonite too.

Keeping a little eye on the markets only through occasional glimpses of BBC, been a real nice break from it all.

Hope i haven't missed anything.

Cheers folks,
 
CanOz said:
Shanghai is closed all week, its May holiday here. I'm typing this while touring around a bit. We're in Dandong tonite, a city with the river between it and Nth.Korea. Quite a site too, this side is booming, and the other side is black with only a few lights visable, spooky...and sad.

Had a nice Nth. Korean meal tonite too.

Keeping a little eye on the markets only through occasional glimpses of BBC, been a real nice break from it all.

Hope i haven't missed anything.

Cheers folks,
Click to expand...

aw would love to go back to China sometime, such a buzz about it. Have you been to Guilin area in the south? we found the food in China nothing like Chinese food in western civilisation, much much better

don't worry you haven't missed anything here - still only goes one way :)

I remember the old days when a correction was for more than 200pts...
 
yeah it likes to trend, no point going against it. ASX200 is now up around 26% or 1,300-odd pts since last August...

looking pretty strong too. 24hr data has us out of the bolly tho, so maybe a brief pause early next week before going for 6,500 - could do it in 2 days based on recent action

asxbreakout050507kl3.gif
 
Hi SkyQ - I'm using CMC's UK spreadbet service - I think there are a few companies who use the IT-Finance.com charts within their product

...altho I think there must be a problem with my software today, its showing the ASX200 as going down :confused: anyone else having this problem?
 

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