Dow Intraday Charts 13 Dec - 17 Dec

[wasp]

Hi all,

Not the best time of year to be a bar manager and part time trader!

First day off this month before the rest of the year the wrong side of 2 foot of mahogany and I decided to watch the action as I knew the second I got in I'd be called into work.

Slightly dismayed and glad I didn't join in as I have not yet connected with IB and have finally had very good reason not to SB anymore.

I'm not sure if it was the SB I was using but I watched as the charts, yahoo! and Bloomberg all said '10710 - 10720 - 10725 - 10730' but the SB never inched above 10690. Then it plummeted and all was nicely in line again. I couldn't believe it!

Anyways, thats me done till the new year where I shall be seriously rethinking whom I trade with.

Hope everyone had a good day,

Chris

 

[justyn]

Chrisw - I don't think your problem was with the SB company, my charts showed a gap between the futures and the Dow of up to 30 poinst at the open - until the Dow suddenly crashed down at 15:10 GMT.

I think the SB price is normally based on the futures price.

I have seen a gap like this at the open once before some weeks back, not sure what causes it but I wouldn't trade until futs come back into line with the Dow.

Justyn.

 

[wasp]

Cheers Justyn,

I know the SB companies have a tendancy to be a couple of points ahead of the market at times to reduce your profit that little bit more. With early execution you can normally justify this by making those points back whilst there still the other direction but today I thought they were being just a bit over the top!

 

[roguetrader]

Chrisw - I don't think your problem was with the SB company, my charts showed a gap between the futures and the Dow of up to 30 poinst at the open - until the Dow suddenly crashed down at 15:10 GMT.

I think the SB price is normally based on the futures price.

I have seen a gap like this at the open once before some weeks back, not sure what causes it but I wouldn't trade until futs come back into line with the Dow.

Justyn.

The gap was caused by the fact that Pfizer had yet to start trading and as such the cash index was not reflecting the loss that it would bring when it began. Other instruments were already pricing it in.

 

[gmca686]

Chrisw,
The problem was PFIZER. Have a look at some of the news feeds. it was suspended from trading because of bad news, but was trading at -18%, ie from $29 down to $23.5. The futures knew this and adjusted. When Pfizer was reinstated, the Dow adjusted down.
regards, GMcA

 

[justyn]

Hi everyone,

no trading for me last few days, been too busy!

Looks a bit like a bear flag to me, target 580?

Hope everyone did well today.

Justyn.

 

[ChartMan]

Chrisw,
The problem was PFIZER. Have a look at some of the news feeds. it was suspended from trading because of bad news, but was trading at -18%, ie from $29 down to $23.5. The futures knew this and adjusted. When Pfizer was reinstated, the Dow adjusted down.
regards, GMcA

Strange day- seems Pfizer was not the only drugs Co. to take a hammering.....

 

[roguetrader]

Strange day- seems Pfizer was not the only drugs Co. to take a hammering.....

Check out OSIP who benefited from the news.

 

[ChartMan]

3 day ND comes in spot on cue. I thought it might go a little higher, and it may have done if it were not for Pfizer.... but then we're not in the guessing game.The point is, that we regularly see a 3 day Neg. divergence deliver on the 10 min chart, so You should bias your trades/targets to the downside.Is that a reasonable assumption, given that you should never second guess the market?
The bear flag gives 580 as target, as already pointed out...Personally, I'l lbe watching for the next SR Switch and watch the action carefully....

 

[justyn]

Chartman

you said the other day that you don't normally see a H&S on the Dow.

On the attached chart I have circled what looked like a perfect H&S with 2 heads to me - am I reading it wrong or is this correct and it is just a rare occurence?

Cheers!

Justyn.

 

[wasp]

Does anyone else here SB?

If so, who do you use? I've been jumping around using IG, Cantor and Finspreads but can't say I'm that impressed with any of them!

 

[wasp]

Justyn,

Pretty sure I saw one the beginning of Wednesday too, sorry, no charts available right now to show!!!

 

[ChartMan]

Nasty day, unless you could get in on the open action,but it seems the pfizer affect really screwed things up on the SB side, as already noted. The rest of the day was , to say the least, pointless, with whipsaw with a capital W being the order of the day.
At least I got close in the comp.....sort of.

 

[cloudbase]

chrisw. Hi.
I've used Finspreads and CMC in the past and as you say there's not alot between them, CMC have tighter spreads, but if you're serious about trading them get yourself a futures account, i use Man Direct but i now alot on here us IB. You will find you are only battling the market and not the spread bet co. as well.
If you trade on a long time scale then the spread bet co.s will sufice, but for daytrading and scalping the way i trade the futures are fantastic.
Good luck.
Steve

 

[wasp]

Cheers cloudbase.

I do trade futures also over a few more days and spent november day trading via SB after a few months paper trading. The spreads and bias do not make it an easy option and although I ended up on the plus side overall, it was not easy. I shall look more seriously into IB and take a look at Man Direct.

Chris

 

[cloudbase]

chrisw.
The thing is with the spread co.s having upwards of a 5 point spread unless you get a decent 30 point move of witch you'll be lucky to make 10 / 15 points daytrading just becomes a frustrating exersise, but with the futures putting orders direct on to the book, buying on the bid and selling on the offer i only need 1.25 points before i'm in profit and from the example above would look to take at least 25 points.
On a whip saw day like today 50 points becomes an achievble target with 1/4 the stress of spreadbetters
I often read about people thinking of trading full time but are unsure, based on their spreadbet results.
If they made the move to futures trading, and using the Dow mini with a $5 /point value which only equates to £2.50/point with spread bet, then they would find the switch to full time trading easier, and most of the futures co.s offer demo accounts wich in my opinion is far better to us than papertrading.
Sorry if thats a bit of a rant, but the spread betters realy are the crooks their made out to be.

cheers. Steve

 

[TheBramble]

With no definitive volume (except to establish 10680 as first resistance for Monday) there were no plays on today's S/R.

If it's any help - forget the SB antics today - they were doing the best they could. Can't blame them for covering their donkeys in a situation like that.

Remember - staying out is as good as winning some days...

And if the S/R is 10650/10680 - does that make for a pretty safe BO strat for Monday?

 

[ChartMan]

Justyn, you're right on both counts. It was an H&S and it is rare.

 

[china white]

Does anyone else here SB?

If so, who do you use? I've been jumping around using IG, Cantor and Finspreads but can't say I'm that impressed with any of them!

mate switch over to real market providers like IB, Rosenthal Collins Group etc... there r plenty of them.....

they have their own probs but at least u r trading market with them NOT SB's biases

 

[peterpr]

SPX & DJIA - Highest volume by far since November 2002 on both indices on a .5% - .75% down day !

What does it mean?