Trading inventory reports? - futures io
futures io futures trading



Trading inventory reports?


Discussion in Commodities

Updated
    1. trending_up 1,395 views
    2. thumb_up 2 thanks given
    3. group 2 followers
    1. forum 3 posts
    2. attach_file 1 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
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

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

 
Search this Thread
 

Trading inventory reports?

(login for full post details)
  #1 (permalink)
Kirkland, WA/United States
 
Experience: Intermediate
Platform: NinjaTrader
Broker: Optimus/Vision/Rithmic
Trading: Futures
 
LightWeight's Avatar
 
Posts: 138 since Jul 2012
Thanks: 138 given, 42 received

Hello all,

I'm curious what the consensus or insight here is about trading scheduled news reports. What I mean by that is trading the reaction of standard news reports, not the fundamentals of what the reports say. EIA inventory reports on Wednesday morning, FOMC reports, ECB reports, USDA reports, etc. I've been observing the EIA reports every week, and it seems like it's entirely feasible to trade the reaction. I mean right on the dot at 10:30 AM the market takes off one way or the other, and it's usually over within a minute, and often returns back down to the previous trading range. Wouldn't it be pretty easy to hop on the rocket and scalp part of the momentum? I've been doing it in sim and it's quite profitable, the only thing I don't know is how bad your fills would be using a limit or buy bid/sell ask order, instead of a market order. Same thing when you cover, are market orders your only option or do bid/ask orders still work?

And just a week or so ago when we had the FOMC release on Wednesday afternoon and then the ECB report the next morning, both times you had the same thing, a quick and hard reaction in oil. Then again on Friday when the payroll numbers came out 100k higher than expected. And finally today the USDA report came out and moved corn up over 10 cents and soybeans over 20 cents in that first minute, before both reversed and came right back down to the trending range.

So I guess my point is, does anyone here trade these reports, or is there something about doing it in real time that I'm missing? I mean if trading the trend is always the best option, this is nothing more than a super fast and super condensed trend, right? Stay flat the market before the report, once you see the price action move then buy or sell, and then cover when the momentum stalls out -- should be pretty easy, right? Then stay flat until the market sorts itself out again, which seems to take 5-15 minutes.

I'm also curious if anyone is aware of other reports that tend to do this in currencies, softs, indices, etc.

As a side note, I also find it amusing how late the news is. I have CNBC running during the EIA report, and by the time the reporter gets on camera all excited about the bull run or short selling action, the move is already over. It's only after the move happens that I go and read the news to find out why it did what it did. I honestly don't know how the big guys who are moving the market like that can translate the news THAT FAST. I mean within seconds of the release the price is moving, it's crazy.

Started this thread Reply With Quote
The following user says Thank You to LightWeight for this post:

Can you help answer these questions
from other members on futures io?
Neurological explanations for trading Success
Psychology and Money Management
NT8 indicator to simulate a Funding Evaluation where to …
NinjaTrader
Cross border fund flows / fx correlations
Treasury Notes and Bonds
If ES tracks SPX, why do support/resistance, Level 2, vo …
Emini and Emicro Index
Second Entry Indicator (Looking for testers/feedback)
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Battlestations: Show us your trading desks!
111 thanks
Selling Options on Futures?
109 thanks
Rank your Futures vs Stocks trading priority
37 thanks
Want your NinjaTrader indicator created, free?
26 thanks
Bitcoin storage wallet recommendations
18 thanks
 
(login for full post details)
  #3 (permalink)
Kirkland, WA/United States
 
Experience: Intermediate
Platform: NinjaTrader
Broker: Optimus/Vision/Rithmic
Trading: Futures
 
LightWeight's Avatar
 
Posts: 138 since Jul 2012
Thanks: 138 given, 42 received


This is a picture of the soybean price move by the way on a 1 minute chart. Are you telling me nobody here traded this?

Attached Thumbnails
Click image for larger version

Name:	Soybean Spike.jpg
Views:	48
Size:	170.3 KB
ID:	84692  
Started this thread Reply With Quote
 
(login for full post details)
  #4 (permalink)
Charlottetown, Prince Edward Island
 
Experience: Advanced
Platform: Ninja
Broker: Optimus - Rithmic
Trading: GC
 
WolfieWolf's Avatar
 
Posts: 232 since Jul 2010
Thanks: 100 given, 269 received

I'm a technical trader, and I don't have a Scoobie Doo about fundamentals; seems like a massive head game to me. Every time someone tries to tell me the reason the market moved I get bored, who knows... who cares, everyone will have a different opinion. At the end of the day the market moved because there was more volume initiating on one side or the other than responsive volume on the other side. Does this mean I ignore reports? Not exactly, I don't care about the content but I know that traders do and participation decreases just ahead of the release and, sometimes, there is a flurry of activity after... so if I have a position on, in profit, ahead of the release, and a technical reason to believe it will continue to move in my favour I'll just leave my position, target and stop in place. I typically won't establish new positions just ahead of the number. I'm only really interested in Inventories (I trade Cl exclusively), FOMC, and non farm payrolls... Oh and 11:30 CST (London Close) daily.

Just my two pence.

Reply With Quote
The following user says Thank You to WolfieWolf for this post:


futures io Trading Community Traders Hideout Commodities > Trading inventory reports?


Last Updated on September 23, 2012


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Battlestations! Show us your trading desk - $1,500 in prizes!

March
 

Importance of Finding Your Own Way w/Adam Grimes

Elite only
 

Journal Challenge w/Jigsaw

April
     



Copyright © 2021 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