Milking Markets

recycle bin

The CAC40 CFD (Admiral Markets) chart at a glimps..

A) 0800 CET - this is when the Euronext CAC40 Index Future (FCE) central order book opens.
B)0900 CET - this is when the cash market opens and the stocks that make up the CAC40 start trading (Sanofi, Total, BNP Paribas, LVMH, ..ect (http://www.sharptrader.com/new-to-trading/stock-indices/overview-of-the-cac-40-stock-market-index/))
C)1730 CET - this is when the cash market closes , after this the Future keeps trading until 2200 CET.

(the black part is the "pit" session and the grey part is the "overnight" session)

Even though I'm trading a Contract For Difference, I still need to be aware of when the index futures (FCE) expire.
On the third Friday of March, June, September and December the Index futures expire as well as the Index Options (PXA).
This results in increased volume due to offsetting, closing or rolling out positions.

Knowing who may be trading and the reason they may be trading can be useful.

Bears having a bit of a trouble getting through that 4888 level..

Of course, if the individual stocks in the cash market are being sold off, it dose not matter what the market depth looks like on the futures.
Algorithms will sell/buy the futures at market if the correlation deviates by X amount from the cash market value.

The Mini Nikkei 225 Future (Osaka Exchange) chart at a glimps..

Japanese Standard Times
A)0500 market closes.*
B)0830 market opens.
C)0900 cash market opens.
D)1130 cash market market closes for an hour for lunch.
E)1230 cash market reopens after lunch.
F)1500 cash market closes.
*On Friday market closes when cash market closes.

Top 4 companies make up almost 20% of the Nikkei 225 by Index weight (http://indexes.nikkei.co.jp/nkave/archives/file/nikkei_stock_average_weight_en.pdf) (April, 2017)
Fast Retailing Co., Ltd. %7.05
Softbank Group Corp. %4.74
Fanuc Corp. %4.58
KDDI Corp. %3.46

Fundamental reason for cointegration between the Nikkei & USDJPY have to do with Japan's export trade relationship with the United States and the fact the Yen is perceived as a safe haven (as opposed to stocks).

The 30yr US Treasury Bonds.
The futures trade on CBOT Globex. Each point is divided up into 32 ticks.

Fundamental reason for the inverse correlation between the US bonds/notes/bills & USDJPY have to do with yields.
Yields, defined as the rate of interest paid on a Treasury instrument, have an inverse relationship with bond prices.

Currently, the central Bank interest rates are.
Japan -0.10
USA +2.00

I was looking at the divergence on the AO with a short in mind but bounce off the cloud changed my mind..
GBPCAD continuation +10

EURAUD continuation +10.
First entry was at the range bar close below the Kijun Sen.
AUD inflation rate slightly better than consensus earlier today.

GBPUSD hidden divergence +10 (mean)

GBPUSD continuation +10.
-about 4 hours before NFP..

GBPAUD started making lower highs and lower lows. continuation +10

Divergence trade on EURUSD +10
Accidentally managed to time the entry perfectly.


I guess I'll conclude this journal here at forex factory.
https://www.youtube.com/watch?v=SAzbim4Ldxc