Information from the Night Session

[UrmaBlume 10]

In our trade we pay close attention to the night session. As markets, especially equity markets, become more global, money managers have a wider choice of derrivatives with which to both hedge and speculate. Because the S&P is the most liquid of them all, night session trade is is done with vigorous foreign commercial participation.

 

What makes this trade of note to the day session trader is that on a majority of days one or the other extremes of the 24 hour session is made in the night session and most all of the trade done in the night session is done by commercial/professional traders. If the night session reflects strong conviction in one direction or the other there is every likelyhood that the same sentiment will be operative during the day session.

 

The screenshots below were taken 2 hours before Monday's 3/2 open.

 

The first graphic below is of our Market Heads-Up Display which shows night session volume is significantly above average in all time frames. It shows sell signals in both the very long and very short intra-session time frames. Also you can see the long term trader commitment is negative by a factor of 2-300% in the longer term intra-session time frames after a sharp rally during the previous 12 minutes. Net New Trade shown at the top is near its session lows and is of a level to predict more selling to come during the day session.

 

The second chart is an overlay of both the day and the 24 hour session in the S&P. It is 2 hours before Monday's 3/2 open and the open of the session is at the high and the current price is near the low after having taken out the November lows on Friday.

 

 

 

 

Edited March 2, 2009 by UrmaBlume

[trader273 10]

cool more uber-secret indicators. good stuff:doh:

[Soultrader 12]

Hi Urma,

 

Like trader273 mentioned, it is rather hard for traders to get involved in your posts without posting more details. Traders do not have access to your Market Heads-Up Display nor do most of us have any idea what is is showing. (though you fully understand it) It would be rather hard for us to ask questions as well.

 

Perhaps you can provide some more info so members can interact?

[UrmaBlume 10]

Hi Urma,

 

Like trader273 mentioned, it is rather hard for traders to get involved in your posts without posting more details. Traders do not have access to your Market Heads-Up Display nor do most of us have any idea what is is showing. (though you fully understand it) It would be rather hard for us to ask questions as well.

 

Perhaps you can provide some more info so members can interact?

 

Accross the top are Session High and Low, Volume and Net New Trade by commercials which I have discussed before.

 

The red, yellow, and green trade signals are taken from indications of price and net new trade on 200, 400, 1,000, 2,000, 4,000, 8,000, 12,000, 18,000, 25,000, 60,000 and 120,00 contract volume charts.

 

The blue is time of day normalized average volume over previous 62 days presented for 6 intra-session time frames.

 

The pie charts show the amount of up volume and down volume in in the most recent 2,000, 4,000, 8,000 and 12,000 contracts traded.

 

The red and green bars to the right of the pice charts show our measure percentage of time of day normalized trader commitment over 6 intra session time frames over the past 62 days.

 

Bottom left is a graph of the net new trade number shown at the top and the bottom right is a Jurik MA smooth of the mid point of prices taken from a 500 contract volume bar in the ES.