What to trade?

[404]

I am looking for a foreign futures contract to start to follow and eventually trade.

I am looking for something that would trade before normal us market hours. (9-5)

Looking into the DAX...any other suggestions...

[namstrader]

404,

Good choice. I put the DAX up and watch with the ES,NZ,ER, and trade the YM. The DAX leads the pack on occasions. Who knows for me perhaps other foreign future contracts do also, however, I have been watching the DAX for many months and I can say that it will always be on my screens going forward as a confirmation for trade setups.

[smwinc]

Depends on what you like to trade. Check out the DAX, or the Bund (GBL). I trade the DAX, but am exploring moving into the Bund (GBL) this year.

If you are used to trading the US markets, the DAX should feel relatively familiar to you. As Namstrader mentioned, in the short-term there is often a strong (positive) relationship to US equities.

In scalping the DAX, I trade from 3:00EST onwards. The DAX opens at 2:00EST, and has to digest what has happened since 16:00EST the previous day. I like to see a range develop, before moving in at 3:00EST on the normal open.

I find it useful to keep an eye on: ES, ESTX50, US Treasury Bonds, Bund (GBL), EUR/USD, JPY/USD. I'm only ever after a few ticks, so it is mainly price action off S&R.

If you don't like the DAX, look into the Bund. The common reasons someone wouldn't like trading the DAX (spread, liquidity, ease of manipulation) are mitigated in the Bund. Unless your Warren Buffet, you shouldn't struggle with liquidity in the Bund.

Finally, just remember to check out the contract specifications and really take the time to watch how they move. Both of these markets can absolutely blow your head off if you're not careful.

SMW

[Bam-Bam]

Does anyone trade ES or YM in the pre-market?

I recently transitioned back into my day job for a couple of months--received an offer I couldn't refuse. I've been watching pre-market activity on these instruments over the past couple of weeks to try trading before work hours.

Liquidity on YM is pretty dismal, but still enough transitions if you're not trading in size.

ES volume seems to pick up anywhere from 2:00am to 5:00am EST depending on the day's events. Order flow looks pretty good. You can really see big players consolidating before block transactions go through. And when the flow starts running, it's like a cascade. Activity spikes around the half hours (x:00 and x:30), with runups into the hour beginning at ~ x:50.

I've mainly been trading ES between 7:00 and 8:00am EST over the past couple of weeks. That means 6:00am to 7:00am is analysis time. As a pattern trader, there are plenty of opportunities. However, there are an awful lot of whipsaws for stop hunting. Price may move in the expected direction to trigger some entries then shoot opposite to trigger panic exits before returning to original (expected) direction.

See ya before the sun rises.

Coffee's brewing,

Bam-Bam

[carcanaques]

I also trade ES pre-market from 7:00 a.m EST. Some days it's dead and others it's moving. I'm only looking to get 2-3 points per contract and shut the platform down which is doable most of the time, especially after a market moving report is released at 8:30.

[The Bear]

Hang Seng Index

[wsam29]

Know yourself and what type of volatility you can stomach.