Anyone scalping the FTSE Futures??

Normally, after a steep decline like the one observed in the previous sessions, markets tend to fluctuate quite volatile not only because the fall forces investors to restructure their portfolios but force them to reshape their outlook on the stock market situation. At this stage investors’ sensitivity to events and news is extreme, so their reaction to these factors could be somewhat exacerbated, thus contributing to the remain of high volatility.
 
Deutsche Bank has published an interesting study on how S&P reacted after the 10 biggest VIX rises. Thus, on average, the S&P appreciated 3.90% in the week following the occurrence of these increases. However, S&P lost an average of 0.40% in the following month and 2.60% in the following three months. Yesterday’s rise in sovereign interest rates is explained by the lower buyer interest that the 10-year bond auction raised among investors and the news that the two parties in Congress have reached an agreement to fund the American state with 300,000 M. USD over the next two years. This measure is expected to aggravate the US public deficit, thereby putting pressure on its yields. A further sharp rise in state interest rates would have a negative impact on equity markets. The second variable relates to the volatility and financial engineering products indexed to it. The third relates to fund withdrawals.
 
This point is particularly relevant as there is a relevant difference between the decisions taken by investors and decisions resulting from an automatic algorithm. Investors tend to assess market conditions before submitting their orders, so in the absence of purchases a number of these investors are likely to wait for market normalization. On the other hand, the automatic programs generally act solely and exclusively according to the algorithms with which they have been programmed that will be able to integrate the market conditions or not. As a result, many of these programs will be able to sell even when purchase orders are at much lower levels than the last quote.
 
22350 is halfway between the 18000 level (which it lingered around for 18 months or so) and the high, so I think this will be an area to watch. That would represent a 16% 'correction', anything more and i reckon we're all doomed...:cry:
 
piphoe said:
that's what she said :D

don't think anyone knows this, not even postman
Click to expand...

Never underestimate the postman Pip, do you think its just coincidence that postie lands back then the markets crash ? :whistling
 
Delighted to see his excellency postie back...miss the banter and erudite commentary on the thread from (most) people.

I reluctantly returned back to some bonded labour recently so have kept a low profile of late..nothing to do with my old style trading of course..which was generally crap anyway...with the odd flash of luck or brilliance

Still trading ftse - but from a different time zone using mostly orders.... strangely enough seems to have improved my overall p&l.... bit dull compared to the good 'ol days...but the way forward for now. Now work that one out:whistling

I will try and keep up... generally will be evening or early morning uk time
 
mike. said:
Never underestimate the postman Pip, do you think its just coincidence that postie lands back then the markets crash ? :whistling
Click to expand...

my experience is most things in life are coincidence..much less so "cause & effect"

nevertheless i glad he;s back baby!!

:D
 
My tea leaves from my mug of "yorkshire" this morning (downunder) are indicating a rise...initially
Ftse stop order in..... above 7135, modest stake. Stop below 7120. Looking for 7160 and 7180. Let's see.
 
swissy said:
My tea leaves from my mug of "yorkshire" this morning (downunder) are indicating a rise...initially
Ftse stop order in..... above 7135, modest stake. Stop below 7120. Looking for 7160 and 7180. Let's see.
Click to expand...

Its there I hope you sold. (y)

I'm short ftse 7161
 
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