In Euro Era, Opening Bell Is a 2:30 A.M. Alarm - News and Current Events | futures trading

Go Back

> Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events

In Euro Era, Opening Bell Is a 2:30 A.M. Alarm
Started:December 11th, 2011 (01:21 PM) by kbit Views / Replies:628 / 0
Last Reply:December 11th, 2011 (01:21 PM) Attachments:0

Welcome to

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • 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, and we will never resell your private information.

-- Big Mike

Thread Tools Search this Thread

In Euro Era, Opening Bell Is a 2:30 A.M. Alarm

Old December 11th, 2011, 01:21 PM   #1 (permalink)
Elite Member
Aurora, Il USA
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
kbit's Avatar
Posts: 5,839 since Nov 2010
Thanks: 3,275 given, 3,321 received

In Euro Era, Opening Bell Is a 2:30 A.M. Alarm

As the European debt crisis roils the markets, American traders who once awoke at dawn are now rising in the dead of night to gain an edge when business begins in London, Paris and Frankfurt.

Gone are the days when traders showed up to work just before the New York Stock Exchange opened at 9:30 a.m. Now, Wall Street has an unofficial opening bell: the 2:30 a.m. alarm clock.

“We have a new credo: carpe noctem — seize the night,” said Douglas A. Kass, a hedge fund manager who routinely sets his alarm for precisely that time to scan the headlines coming out of Europe. All last week, the musings of the German chancellor, Angela Merkel, and other European leaders put the markets on edge. “You are almost forced to get up and watch the goings-on,” he added.

The nest of night owls is growing more crowded. Senior executives at the Pacific Investment Management Company, the giant bond-trading house, wake up at 1 a.m. in Southern California, to check their BlackBerrys for updates from colleagues in Europe.

“Your nerves are twitching,” said Christian Stracke, Pimco’s global head of credit research.
Michael Mayo, a longtime bank stock analyst, said he was working the lobster shift so often just to keep up with the latest International Monetary Fund rescue or Slovenian parliamentary vote that he might as well call himself a 24-hour-a-day research shop. “Who would have thought we would have to be looking at Italian sovereign debt yields to figure out what Morgan Stanley’s stock will do?” he said.

For traders, there is too much to lose if they sleep through history.
That’s why Craig Gorman, a partner at First New York Securities, routinely monitors his trading positions in the middle of the night. He turns on CNBC and fires up the Bloomberg terminal with six screens at the foot of his bed. “With the TV and all my monitors on, it gets a little bright in there,” he said. “My wife is not thrilled about it.”

The other downside? It is hard to fall back asleep once the adrenaline from trading starts pumping. Even so, Mr. Gorman said it was worth the price: “You can’t get the same feel for market psychology looking back at the charts in the morning as when you are up,” he added.

News organizations and brokerage firms see an uptick in early-morning activity, too. Bloomberg reports at least a 30 percent jump from a year ago in the use of its mobile applications, which allow customers to remotely log into the trading terminal at their office desk. The biggest spikes have occurred well before the New York markets open, between 5 and 7 a.m., when traders wake up and commute to work, as well as between midnight and 3 a.m., when trading in Asia winds down and the European markets open, according to company officials.

CNBC has recorded a 50 percent increase in the tiny audience watching “Worldwide Exchange,” which broadcasts between 4 and 6 a.m. Traffic on its Web site between 2 and 5 a.m. has risen about 30 percent compared with a year ago.
There are also signs that predawn trading by American retail investors has increased. TD Ameritrade, which caters to individual investors, said customer trading volume in S.& P. futures — a bet on the coming day’s direction in the market — has more than doubled between 3 and 6 a.m. over the last year.

Wall Street has long been the land of the early riser, and plenty of fixations in high finance have come and gone. In the late 1970s and 1980s, traders obsessed over the state of the money supply; in the late 1990s, they focused on rapidly rising Web page views of the leading dot-com companies. Last year, traders acted like armchair engineers in deep-water drilling as they monitored images of the BP oil spill gushing into the Gulf of Mexico.

Whether or not Europe’s new plan struck on Friday to achieve budgetary discipline brings market stability, some suggest that the current middle-of-the-night frenzy heralds a lasting change for an industry that coined the term “bankers’ hours.”

“It is now making people aware that they can become a global trader,” said J. J. Kinahan, the chief derivatives strategist for TD Ameritrade. “They don’t have to rely on the hours of the New York Stock Exchange” between 9:30 a.m. and 4 p.m. Eastern time.

Several forces are at play. The convergence of mobile technology and financial information allows investors to trade on news — anywhere, anytime. The markets, meanwhile, have grown so interconnected that what happens with sovereign bonds can quickly affect equities.

Any whiff of trouble in Europe can send markets into a tailspin and easily overwhelm the hard-earned edge a trader might have gained by digging deep into the financials of an individual stock.
“The degree to which asset prices are connected is off the charts,” said Dean Curnutt, the president of Macro Risk Advisors and another early riser.

That is the main reason that Brad Alford, the chief investment officer of Alpha Capital in Atlanta, rolls over in bed, grabs his iPad and glances at the Bloomberg market feeds with one eye, sometimes two, before the sun comes up. Or why Mr. Kass trudges over to his poolside home office in Palm Beach, Fla., to e-mail hedge fund friends about the latest troubled country du jour. “There is a pretty active cabal in those early hours,” he said.

It is also why Al Moniz, a European bond fund manager at Fore Research and Management in New York, has been waking up at 2 a.m. at least several times a month, and expects even more bleary-eyed nights next year.
“It is probably going to get worse,” he said. “I don’t think there is any end in sight.”

Reply With Quote

Reply > Futures Trading, News, Charts and Platforms > Traders Hideout > News and Current Events > In Euro Era, Opening Bell Is a 2:30 A.M. Alarm

Thread Tools Search this Thread
Search this Thread:

Advanced Search

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

NinjaTrader 8: Programming Profitable Trading Edges w/Scott Hodson

Elite only

Anthony Drager: Executing on Intermarket Correlations & Order Flow, Part 2

Elite only

Adam Grimes: Five critically important keys to professional trading

Elite only

Machine Learning Concepts w/FIO member NJAMC

Elite only

MarketDelta Cloud Platform: Announcing new mobile features

Dec 1

NinjaTrader 8: Features and Enhancements

Dec 6

Similar Threads
Thread Thread Starter Forum Replies Last Post
Help to create alarm Ichimoku calvin11 NinjaTrader Programming 8 June 1st, 2015 06:13 PM
Yields in Italy Debt Auctions Hit Record Euro Era Highs Quick Summary News and Current Events 0 November 25th, 2011 07:30 AM
Opening Bell Ringtone StockJock Off-Topic 0 August 26th, 2010 03:44 PM
Opening Bell Program spinnybobo NinjaTrader Programming 5 July 28th, 2010 04:42 PM
DoubleMA Alarm Tonywalker NinjaTrader Programming 0 December 9th, 2009 06:44 AM

All times are GMT -4. The time now is 05:40 PM.

Copyright © 2016 by 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 2016-10-28 in 0.08 seconds with 19 queries on phoenix via your IP