CL spike on 5/16 at 23:00:02 Pacific. Insights as to why? - Commodities Futures Trading | futures io social day trading
futures io futures trading


CL spike on 5/16 at 23:00:02 Pacific. Insights as to why?
Updated: Views / Replies:1,108 / 3
Created: by GoSlow Attachments:1

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

CL spike on 5/16 at 23:00:02 Pacific. Insights as to why?

  #1 (permalink)
Elite Member
Tracy, California, United Stat
 
Futures Experience: Intermediate
Platform: Various
Favorite Futures: EUR/USD
 
GoSlow's Avatar
 
Posts: 19 since Dec 2010
Thanks: 48 given, 8 received

CL spike on 5/16 at 23:00:02 Pacific. Insights as to why?

Hi. I finally decided just to post a question, instead of cluttering somebody's journal or thread. On 5/16, at 23:00:02 Pacific, there was a very large spike in CL from 95.31 to 95.79 and back, all within a second; around 1000 contracts total. Can anyone say why this happened and how common it is; should we chalk it to stop hunting? I don't see an economic announcement scheduled for that time, using forexfactory.com's calendar. Thanks in advance.

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
las vegas
 
Futures Experience: Intermediate
Platform: Sierra Chart
Broker/Data: Velocity/IB
Favorite Futures: 6E
 
Posts: 1,147 since Feb 2010
Thanks: 304 given, 836 received

Answer
This post has been selected as an answer to the original posters question Answer


Welcome to the wonderful world of hft. Can happen whenever volume is low.

Reply With Quote
The following user says Thank You to vegasfoster for this post:
 
  #4 (permalink)
Elite Member
Berlin, Europe
 
Futures Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
 
Fat Tails's Avatar
 
Posts: 9,651 since Mar 2010
Thanks: 4,226 given, 25,599 received
Forum Reputation: Legendary

A cat and a bunch of mice

Answer
This post has been selected as an answer to the original posters question Answer


GoSlow View Post
Hi. I finally decided just to post a question, instead of cluttering somebody's journal or thread. On 5/16, at 23:00:02 Pacific, there was a very large spike in CL from 95.31 to 95.79 and back, all within a second; around 1000 contracts total. Can anyone say why this happened and how common it is; should we chalk it to stop hunting? I don't see an economic announcement scheduled for that time, using forexfactory.com's calendar. Thanks in advance.


For spikes like this there is always an explanation. In this case it is pretty easy to figure it out.

The spike occured at 23:00:02 Pacific Time. The timestamp and the shape of the spike points to a news release. So what you need to find is the source for the news. Actually, if you do your homework, you should know the release times for all scheduled news that affect the markets.

In this case it was easy to figure out the source of the news. 23:00 Pacific Time is 8:00 Central European Time, and the scheduled news that came up was the release of the passenger car registrations by ACEA (European Association of Car Manufacturers).

For further analysis of the spike, just open a high resolution tick chart. For convenience, I have used a 5-tick chart. The chart shows 1 second in the life of the crude oil futures market (the time interval between 8:00:02 and 8:00:03 CET).

What happened? After the news release, there was a downmove, all 1-lot orders (a volume of 5 on a 5-tick chart identifies a 1-lot order). Selling accelerated and after about 140 contracts had changed hands, prices hit support at $ 95.02. The churn bar shows that the sell market orders were now hitting a larger order sitting in the order book.

The little mice came to the cat who was waiting for its European breakfast. Once the cat had bought 35 contracts at a price between $ 95.03 and $ 95.05, it then established a sell limit order at a level of $ 95.38, just at the upper end of the range, where crude oil was sitting prior to the news release.

The cat(s) probably made a profit of 35 * (95.38 - 95.04) * $ 10 = $ 11,900. The little mice paid dearly.

Conclusion: It is not a good idea to engage in breakout trades via stop market orders after a news release. In this case the traders who had prepared their game with limit orders took away the money from the breakout traders. In the end crude oil traded where it had been trading before. Winners and losers closed out their positions, and the spike just shows the size of the battefield.


Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following 9 users say Thank You to Fat Tails for this post:

Reply



futures io > > > > CL spike on 5/16 at 23:00:02 Pacific. Insights as to why?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Linda Bradford Raschke: Reading The Tape

Elite only

Adam Grimes: TBA

Elite only

NinjaTrader: TBA

January

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
ES trading break from 16:30 to 17:00 only during DSL? aquarian1 Emini Index Futures Trading 4 March 17th, 2012 02:54 PM
9 Insights From The Book 'How To Be A Rogue Trader' kbit News and Current Events 0 January 2nd, 2012 01:54 PM
RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 02/12/11 Quick Summary News and Current Events 0 December 2nd, 2011 08:20 AM
$100.00 A Day... HJay Trading Journals 78 November 11th, 2009 02:23 AM
ZN Trades Jul 02 sukhsan Traders Hideout 2 July 2nd, 2009 11:02 PM


All times are GMT -4. The time now is 03:13 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-11 in 0.09 seconds with 26 queries on phoenix via your IP 54.226.172.30