[malvado xetra]

Overnight Was A Bit Beary

[torero]

malvado,

How strong is the relationship between S&P and DAX? And also DAX's relationship to opening of the US markets? Does DAX trade overnight as well? Thanks.

[malvado xetra]

all the markets interact themselves in the same wave. I mean the big indices like SP, DJ, NASDAQ, DAX, NIKKEI, and so on. US market lead the markets. DAX just follows it. DAX futures close at 22h spanish time. DAX doesnt open overnigt 24h like SP futures. I dont know if european markets influence US opening. I dont think so. US news before the opening bell are more importants than what Europe did in the morning.

Originally Posted by torero »

malvado,

How strong is the relationship between S&P and DAX? And also DAX's relationship to opening of the US markets? Does DAX trade overnight as well? Thanks.

Your questions are addressed in the other thread on the DAX, complete with links to the presentation by John Carter, where he answers all your concerns about the DAX (and EuroStoxx 50 too).

http://www.traderslaboratory.com/for....html#post9806

Take a moment and review the linked .pdf as well, while watching the presentation and you should have a better grasp of how to trade the European futures concurrently with the US markets.

[malvado xetra]

sorry torero I said wave instead of WAY. Sorry about my English

[torero]

I say, didn't know that, thanks cooter & malvado. My bad.

[wrbtrader]

Originally Posted by torero »

malvado,

How strong is the relationship between S&P and DAX? And also DAX's relationship to opening of the US markets? Does DAX trade overnight as well? Thanks.

Hi torero,

It really depends on the trading day and what's occurring via key economic reports, key market events and geopolitical events.

Simply, some days the S&P reacts to the DAX and other days the DAX reacts to the S&P.

You can see the evidence of the S&P following the DAX in the ES Emini overnight data on those trading days you see strong price spikes in the ES in the overnight trading session.

When you see that, more often than not its related to something occurring in Europe or elsewhere in the world.

In the past when I was trading the ES, DAX and the CAC40...if one gave me a pattern signal and if I didn't feel like trading the trading instrument with the pattern signal...

I would take the trade in another trading instrument via the pattern signal in the other (sister trading).

Example, bullish price action in the DAX and I would take the trade in ES or vice versa.

Thus, the correlation is good enough for sister trading on many trading days.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term

"Volatility Analysis is a doorway to consistent profits."