Wednesday, February 07, 2007

Early Morning Trade

HSI, the HongKong Stock Index Futures traded on HKFE, are notorious for huge runs, 30 to 50 ticks in 2 minutes are common given the right signal. At ~6.40$/tick that's a nice return for an early morning trade. Limit orders work in HSI if the momentum is with you, but don't be greedy, as sitting on the other side of the world any order you give has to travel 20.000km around the globe before it's received at the exchange. It might be negligent, but placing orders you will experience a small delay not seen when trading at the US or European exchanges. So I took 30 ticks this morning, even if the market was still going up. But let's look at the signal.

  • Bottom made 20665, which was a higher low
  • CCI showing a small divergence
  • POC (red line) at 20700, with some volume below at 20690
  • I waited with the entry to clear that 20690 area, as any volume coming in there, would have meant a retest of the lows
  • 20700 showed me just 30 contracts on the offer in a rising market, with a second green candle.
  • Long 20698
  • Resistance at 20720, I was tempted to exit 20718, but actually wasn't filled on my limit order, as HSI was going down already for a retest of 20712. Buyers stepping in again and I lifted my exit order to 20748
  • Hesitation at 20732, Trailing Stop moved to 20728 with the Turbo CCI hooking down and CCI forming a plateau
  • Exit 20728 for +30 in 2.40minutes