The US and AU futures markets, are the only two in the world, that are open (almost) continuously.
The SFE SPI200 (Sydney Futures Exchange Share Price Index) futures contract is similar to the Chicago Mercantile Exchange (CME) S&P 500 contract and UK LIFFE FTSE 100 contract. The principles are the same for all contracts. The SPI200 is based on the underlying physical S&P-ASX200 Index, the benchmark indicator of the Australian Stock Exchange. Users of SPI200 include major International and Australian banks, Fund Managers and other large investment institutions.
dow futures - observations from down under
It's often easier for outsiders to see what's happening.
The trading concepts outlined in this site are applicable to complex index futures. Developed over 15 years. First published 2003. An integral part of the development was the simultaneous observation of the DOW + DJII + S&P500 indexes. If you want to know what is going to happen to the DOW and S&P500, watch what happens with the SPI200 in the last hour of each day. Its "happy hour". If the SPI200 squirts in either direction, in the last hour, one trader we know, immediately goes long or short the DOW futures accordingly. No guess work required.
insider trading instruction manual
US and SEC regulatory controls on insider trading, in the US, do not apply in Australia.
Most large trading houses in Australia are branches of major US trading houses.
Australian regulatory controls on insider trading do not apply to futures trading. At all.
See regulatory insider trading controls in the Australian market
Regulatory conditions are conducive to the following
The Australian market tracks the S&P500 index point for point overnight (Australian time), and responds to any moves in the Dow during the opening session the following day (Australian time).
If a major US institution was aware of an/any event that could have an affect on the DOW, which cannot be taken advantage of in the US, it is possible to take positions in the Australian futures market, one day, and exit the following day, on the open. see
happy hour
On Tuesday 30 November 2004 at 1600 hours accumulated SPI200 volume was 12,000 contracts. Range for the day was moderate. By 1630 the SPI200 had fallen 26 points, a discount to cash of 9 points. Previous day closed at a premium to cash of 13 points. Final volume was 18,000. An additional 50%, or 6000 contracts, done in the last half hour. Such activity is often a precursor to a serious move in US markets. At 1930 australian eastern standard time, 3 hours later, the DOW futures fell over. The following day SPI closed at 7 point premium. Day after that 16 point premium. Someone knew something. Knowing the AU market tracks the US market, instruments outside the jurisdiction of the SEC are very appealing.
mispricing - three dominos - knock-on effect
3 markets London, New York and Sydney open at different times. London does not have a night market. During daylight saving London opens and closes 6 hours ahead of New York, thus does not see late New York moves. Sydney opens 2 hours after New york closes, thus a knock-on effect will occur during Sydney's opening session. London opens 2 hours into Sydney night session. Because London has not seen the late New York move, it's open will strongly reflect the unseen NY move. If London over-reacts that will have an immediate, further knock-on effect, on the Sydney night session. Double-whammy.
dont blink - you might miss it
If you dont look - you wont see it. Just look in the right place.
It is said the SPI200 index future is the most difficult index in the world to trade.
Many traders have claimed it is easier to trade the US and Euro markets than the SPI
So, success with SPI200 index future, must mean probable success in any other market.
The fabric of Australian society is woven around a culture of speculation.
If you wish to learn how to speculate you have come to the right place.
If you wish to learn how to be relieved of your money try trading the SPI200 index.
watch this space - details available shortly
The controlzone targets concept has evolved from observation and analysis of trading the SPI200.
It is a way of looking at the behaviour of the market participants. The mistake, in our view, most traders make is to try and guess where the market is going. Read the section on the controlzone and the possible locations of a marathon course. It is easier to clip the market from the outside edges going in. Wait until they show where the course is being run.
In arriving at these conclusions we have developed concrete thoughts on the behaviour of the Dow-DJII and its controlzone. That it has one we have no doubt. It's root number is identical to the SPI. No surprises there. It has a larger iteration than the SPI. No surprises there either.
The DOW DJII behaves more predictably than the SPI200.
