Trading The SPI - NON-Gann Techniques

[>Apocalypto<]

meantime squeezing the shorts in the US...

"The SP500 rally last night was apparently due to an error. A US house made a mistake and bought 5400 futures when they should have bought just 54 futures. This turned all long var players, who were going to sell the close, into buyers. Since you cannot cancel MOC orders in the last 10 minutes, these var swap delta buyers had to buy back their MOC amount plus more to get the right hedge.

This amounted to $5billion worth of fake buying, causing the Dow to rally 250 points in 20 minutes..."

that's unbelievable,

thanks for the post Edwood

 

[professor_frink]

Given that HK is the last to close is this suggesting the Nikkei will re align itself towards HK when the Nikkei opens?

No. The nikkei will react on open to overnight moves overseas, like our market does.

 

[Pommiegranite]

that's unbelievable,

thanks for the post Edwood

Personally, being the sceptic that I am, I don't believe it.

Remember this case of not getting the decimal in the right place?

 

[Edwood]

I doubt very much it was a "mistake"

 

[Trembling Hand]

I Think I mentioned this during the Feb/Mar correction, but it might be time to bring it up again. During recent corrective periods, the SPI is very highly correlated with the nikkei, so I would highly recommend anyone trading the SPI to keep an eye on what the nikkei is doing.

The nikkei and the HSI normally feed off each other during the day(not just during corrections, it happens all the time with these 2), so it's a good idea to keep an eye on it as well.

Another day of 1 to 1 to 1 moves on the SPI, Nikkei, HSI you could ad the YEN into that as well.

 

[CanOz]

Another day of 1 to 1 to 1 moves on the SPI, Nikkei, HSI you could ad the YEN into that as well.

YES! Thanks to Prof for pointing that out, i've made a couple more nice little scalps today in between meetings...scalping the ASX while watching the nikkei and HSI...allot of fun.

Cheers,

 

[Nick Radge]

Nice reverse Head & Shoulders on the 60-min chart...

 

[Edwood]

nice spot Nick, potential c or 3 up but personally not expecting too much too soon. would like to see some more bottom probing to pull in some shorts for another grind

 

[porkpie324]

Hang on to your hats on Monday, FTSE down 34 1.06%
DJI down 281 2.09%
BHP(london) down 2.4%
ASX 200 Fut down to 5856
The US mkt held up ok until the last 2hrs of trading.

As for the ASX200, this is getting down to this bull runs trend line.porkpie

 

[Edwood]

hows your trendline looking Porkpie? potential bullish descending wedge setting up with some +ve divergence, well bullish until we drop out the bottom anyway

 

[porkpie324]

OK Mr Ed, trend line still holding it's at 5766 as of Friday, ASX200 at 5844 today.
Interesting to note DJI trend line as on Friday at 11924 the DJI closed at 13181 thats still 1257 points above or 10.5%.
Also this bull run started at exactly the same time ie DJI, FTSE & ASX200
porkpie

 

[porkpie324]

Forgot to add, I've noticed the MACD divergance also on the hourly chart, porkpie

 

[Edwood]

wedge has broken up, looking at around 80pt gap up for the open

 

[Edwood]

nice gap fade today if anyone took it - here's a stab at a count on the recent action - can potentially count a five move down so possibly due a decent pull-back now. altho in these markets making predictions is a mugs game

 

[Trembling Hand]

nice gap fade today if anyone took it - here's a stab at a count on the recent action - can potentially count a five move down so possibly due a decent pull-back now. altho in these markets making predictions is a mugs game

It was always on the cards, that was a suckers rally last night in the US. they actually had more stocks declining than went up.

 

[Edwood]

we got close to the 2.618 extension today, perhaps tonight. we also have a trend line again for shorts, which is always nice

 

[Edwood]

s/bet rejected by 6,118 at the first attempt (6,115 SPI equiv) - not a bad move considering it started with a 'mistake'

 

[CanOz]

This may be a stupid question but.....is it possible to trade after ASX hours rally that occurs from time to time...and is this shorts covering?

Cheers,

 

[Edwood]

hi Can - SPI hours are 9:50am - 4:30pm, 5:10pm - 7am (or it might be 6am). looked like short covering today, we tested the HOD twice and it was taken over after the cash close so there were probably a few stops there to help it on up

 

[CanOz]

hi Can - SPI hours are 9:50am - 4:30pm, 5:10pm - 7am (or it might be 6am). looked like short covering today, we tested the HOD twice and it was taken over after the cash close so there were probably a few stops there to help it on up

Thanks Edwood, i'm curious about the little nuances that show themselves around open/closes etc.

Cheers,