dow open

[Stevegclarke]

Hi all has anyone herd of just trading the dow open ? it looks good profits can be made if your quick. Also low risk if your not to gready. The first few minutes move a lot iv seen 50 point pluss ?

 

[Rhody Trader]

You have to be specific. Trade the Dow open how? You mean buy or sell right at the opening bell?

 

[arabianights]

Lots of people trade only the openings of futures contracts in general - like you say there are often nutty mispricings from order imbalances which can bring you very quick profits.

Dow is open 23 hours a day though so I don't know about it specifically. On the other hand, Rhody definitely does...

 

[Stevegclarke]

You have to be specific. Trade the Dow open how? You mean buy or sell right at the opening bell?

Yes sorry the very start I ment for the first 5 - 10 mins or so it seems not to risky if you know if it will open up or down.

 

[Rhody Trader]

Yes sorry the very start I ment for the first 5 - 10 mins or so it seems not to risky if you know if it will open up or down.

Well, if you know where the market is going then certainly!

Keep in mind that the Dow index is comprised of 30 stocks which don't all necessarily open at the same time. As a result you may see the index open the day lower or higher than where it should as each stock starts trading. That's not a tradable move, though, because the futures/options will already be where the index is going eventually be.

As arabianights said, the Dow futures trade around the clock. They will tell you where the Dow is going to actually open once all the stocks are open - roughly.

 

[Stevegclarke]

Oh ok, on cmc the dow 30 I have noticed will rally up or down in the direction of the dow on open. Is this just a coincedience ?

 

[arabianights]

Oh ok, on cmc the dow 30 I have noticed will rally up or down in the direction of the dow on open. Is this just a coincedience ?

Dow futures will be volatile during the opening of the dow (or so I've noticed) - you also seem to see that the first fifteen minutes of the dow opening a lot of orders being fulfilled which leads to funny effects.

I'm not a dow trader though - these are comments from someone who watches the dow as it affectes their markets. So take with a big pinch of salt.

 

[Rhody Trader]

Oh ok, on cmc the dow 30 I have noticed will rally up or down in the direction of the dow on open. Is this just a coincedience ?

I'm not familiar with what CMC has on their platform. Presumably, though, the Dow 30 is the same (effectively) as the Dow index. If so, they can be expected to trade in the same direction.

 

[gabriel lavelle]

Hi all has anyone herd of just trading the dow open ? it looks good profits can be made if your quick. Also low risk if your not to gready. The first few minutes move a lot iv seen 50 point pluss ?

I agree - I am currently analysing all my trades in the past 2 years & early (not finished yet) indicators tell me that if I can get the open right I can just trade for an hour usually 30 Contracts using CFD's - CMC is ok for this

 

[gabriel lavelle]

Well, if you know where the market is going then certainly!

Keep in mind that the Dow index is comprised of 30 stocks which don't all necessarily open at the same time. As a result you may see the index open the day lower or higher than where it should as each stock starts trading. That's not a tradable move, though, because the futures/options will already be where the index is going eventually be.

As arabianights said, the Dow futures trade around the clock. They will tell you where the Dow is going to actually open once all the stocks are open - roughly.

Hello can you tell me how long it takes the Dow to fully open?

 

[Mornington Crescent]

gabriel

conspiracy theory says they can manipulate that

if they want the open to be up then they only open selected stocks first
Down stocks get opened a bit later sometimes 15 mins later

They can also work it the other way if they want the open to be down

Remeber , you are playing against the big boys.
They dont take prisoners

 

[tomorton]

I haven't tried this on the Dow but I have been making much points recently SB trading the FTSE100 immediately after the first hour. Its currently highly probable either to reverse or break out in the prevailing direction set in that first 60 minutes, but will make a 2% move within the day, sometimes within a couple of hours. Some days it does both of course. The FTSE also is complex as it effectively has two opens - one at 8 when London trading starts, the other about 1, when US futures pre-New York open give it a kick: can reverse horribly here.

But the first 5-15 minutes from 8 can be mayhem and to my eyes untradable except as a pure gamble due to the oscillations. Possibly after the first 30 there might be an indication as to where next. Surely the Dow's opening minutes are also untradable except for gunslingers?