Trading The SPI (Open)

[Bronte]

It is often quoted that the SPI is "Opened by amateurs, closed by professionals"

My intention is to use this thread as a place for preopen SPI discussion.

Any / all market calls will be made before the SPI opens. 09:49:30

A maximum Stoploss of eight points will be used, at all times.

Only the exits will be live.

All SPI traders are welcome to post.

Please enjoy......

 

[Bronte]

NYSE Dow Jones Finished up 193 + 1.33 %
SPI Sycom 5248 H Closed at 5239
Target 5240

Double Top 5237 5248
Gap to close 5217 High
Directional Day due......

Ideal position for my stoploss above Sycom High
Sell 5241 Limit
Looking for Breakeven asap.
Good luck SPI traders.

 

[Bronte]

Opened Low 5230
Daily Double Top now in place: 5237 5237
Intraday Triple Top in place: 5236 5237 5235
Sell 5241 LMT order cancelled.

 

[Caveroute]

Opened Low 5230
Daily Double Top now in place: 5237 5237
Intraday Triple Top in place: 5236 5237 5235
Sell 5241 LMT order cancelled.

Hi Bronte, interesting thread. I have a few questions, if you don't mind -

Were you second guessing a reversal at the after hours high - 5248, hence your limit entry at 5241 with an 8 tick stop ?

Where did 5237 come from - 24 Jan, RTH high, and why this particular high - there are several contenders ?

What was the logic behind the statement - directional day due ?

Why did the daily DT, intraday triple top nullify your earlier view ?

Thanks .......

 

[Bronte]

Hi Bronte, interesting thread. I have a few questions, if you don't mind - OK

Were you second guessing a reversal at the after hours high - 5248, hence your limit entry at 5241 with an 8 tick stop ? Yes

Where did 5237 come from - 24 Jan, RTH high, and why this particular high - there are several contenders ?
24th Jan High

What was the logic behind the statement - directional day due ? A run away train expected

Why did the daily DT, intraday triple top nullify your earlier view ? Not sure what you mean here Cav ?

Thanks .......

5239 High so far
Do you trade the SPI Cav ?

 

[Caveroute]

5239 High so far
Do you trade the SPI Cav ?

Hi -

I was expecting some action today, but not a lot so far !!

Thanks for the response, my last question was really asking why you cancelled your limit order based on what you had seen from the open today.

Yep, I trade the SPI - seems a lot of people don't like to - not sure why.

It can be sluggish, but so can all markets, I usually stop around noon, as after 1pm things can quieten down a lot.

 

[Bronte]

Welcome aboard Caveroute, great to have you here.

Yes, the train leaves the station every day.....
We have not been aboard a run away for a while now.

I am just concentrating on 'Trading the SPI' open here on this thread.
That is why I cancelled.....this open trade was over.

Twenty years of Trading the SPI

 

[CanOz]

Hi -

I was expecting some action today, but not a lot so far !!

Thanks for the response, my last question was really asking why you cancelled your limit order based on what you had seen from the open today.

Yep, I trade the SPI - seems a lot of people don't like to - not sure why.

It can be sluggish, but so can all markets, I usually stop around noon, as after 1pm things can quieten down a lot.

I think TH was saying its full of arb bots, so rather than trade a proxy why trade the markets they're arbing it against, assuming the HHI, HSI...the China link maybe.

 

[Bronte]

NYSE Dow Jones Finished up 193 + 1.33 %
SPI Sycom 5248 H Closed at 5239
Target 5240

Double Top 5237 5248
Gap to close 5217 High
Directional Day due......

Ideal position for my stoploss above Sycom High
Sell 5241 Limit
Looking for Breakeven asap.
Good luck SPI traders.

5241 Sell cancelled.
5239 was the High
5217 Gap close Low
22 point Range Day.

 

[Caveroute]

I think TH was saying its full of arb bots, so rather than trade a proxy why trade the markets they're arbing it against, assuming the HHI, HSI...the China link maybe.

Yes, ok, but there are bots everywhere you look - I read somewhere that 90%+ of trading is done by bots.

If it looks like a futures market and trades like a futures market, is there a problem ?

 

[Caveroute]

5241 Sell cancelled.
5239 was the High
5217 Gap close Low
22 point Range Day.

So whats the strategy Bronte - try and pick up the opening reversal, stop to b/e and run with it all day ?

 

[CanOz]

Yes, ok, but there are bots everywhere you look - I read somewhere that 90%+ of trading is done by bots.

If it looks like a futures market and trades like a futures market, is there a problem ?

Algorithms are on the decline according to Bloomberg and many other articles posted here in the last 12 months...

Maybe TH can explain why its not a great market to trade anymore and why all the prop abandoned it years ago...

 

[Caveroute]

Algorithms are on the decline according to Bloomberg and many other articles posted here in the last 12 months...

Maybe TH can explain why its not a great market to trade anymore and why all the prop abandoned it years ago...

Ok, but's that's HFT stuff - maybe it extends into other areas I'm not sure. But i'd be really surprise if market computer modelling in general, was in decline.

Did you look at the bond market Kid is trying to trade, a saw tooth wave form,if props trade that what's the problem with the SPI ?

 

[Bronte]

So whats the strategy Bronte - try and pick up the opening reversal, stop to b/e and run with it all day ?

My first market orders of the day have always been before the open.
Just in case the train makes a high speed exit out of the station

The SPI is now 5241 interesting.........

 

[CanOz]

Ok, but's that's HFT stuff - maybe it extends into other areas I'm not sure. But i'd be really surprise if market computer modelling in general, was in decline.

Did you look at the bond market Kid is trying to trade, a saw tooth wave form,if props trade that what's the problem with the SPI ?

Prop Firms generally trade bonds in a spread, the curve or against US treasuries etc..., not outright. Now i'm assuming you are talking about trading the SPI directionally outright, i'm saying most Prop Traders don't trade it outright directionally....As for why, we'll have to wait for a Prop Trader to make an appearance, or digg up some old posts...

 

[kid hustlr]

FWIW there's not THAT many algos in the SFE bonds. There's definitely some there but on a relative basis compared to other equity indices they are effectively nothing.

My understanding is its partly due to the fact you can't 'pinch the cash'. A lot of algo's in the equity futures just market make looking to arb the underlying. A lot harder to do in the aussie bond mkt.

Also as Can said there's a lot of algos which are linked to other markets and whilst there is some truth to that in our 10 year pit the front end of the curve there doesn't appear to many algos of that nature.

I'm not sure what TH knows about the SPI which makes it 'more untradeable' than other equity mkts however.

 

[Bronte]

NYSE Dow Jones Finished down -30.83
SPI Sycom 5290 H Closed at 5272
Target 5257

Double Top: (5283/78) 5270
Possible Gap to close 5270 High
Directional Day due......

Ideal position for my stoploss above Sycom High
Selling 5272 Limit
Looking for Breakeven asap.
Good luck SPI traders.

 

[Bronte]

Opened Low 5264
Daily Double Top now in place: 5273 High
Intraday Triple Top in place: 5274 5272 5273
Selling 5272 LMT Filled. +2 Taken
SPI Open Trade over.

 

[Valued]

I regret not trading the SPI at open recently. You see US indices showing sure signs of weakness but the SPI will still go up the next day anyway a lot of the time because the market doesn't recognize the technical signals of weakness. I am going to start trading it more often. What happens if it opens up higher but since I know the overseas markets are weak I want to close out my positions but the SPI still rises giving you time to get out. On the flip sides you need to make sure your stops can handle some up-thrusts if you turn around and go short or else you have to open your position midday.

Disclaimer: This is written from the point of view of EOD trading.

 

[baby_swallow]

SPI pump and dump action.....
From open, market continued to rise, (the Big Boyz knew something we don't)...
Just after the release of the Employment figure (11:30am), it began to sell off and back to the opening levels.

(Everybody is expecting SPI to remain flat or retrace a bit after several days of up move, and also
the US market ended flat....)
,