11/06/2012 Live Update

[rc1269]

I don't get it. I understand alot of market participants reeeaaaallly want to sell today. Ok, fine.

What I don't get is, why does the Nikkei 225 move up/down pretty much second for second with the S&P 500 futures ( though it rebounds to lose less ) ?

Does that mean that people are either manually shorting the Nikkei as they short the ESZ12? Or that organizations have programmed their trading software to trade the Nikkei as they trade the ESZ12 ( and they're trading so much more than the Japanese Nikkei participants that the chart looks like the ESZ12?

It doesn't make sense to me....

I can't believe the Japanese are watching the movements in the ESZ12 or have programmed their software to watch the ESZ12 either normally or even just because of the election.....

Anyone have insight into this?

Thanks.

i think you're looking at it a little backwards actually. ES is going to trade up or down on Nikkei trading; i don't think Nikkei traders are looking at US futures for direction realtime. Though, depending on the circumstances this might change. Generally, however, US futures will anticipate a US open that consistent with how Asia has traded overnight.

[toddcobbmd]

rc1269, I agree completely. And that does make sense. But I clearly saw the opposite happening tonight, and I don't see how that would be possible. The large moves in the ESZ12 made sense in terms of the election, and they overpowered the Nikkei at several points. Even when the ESZ12 went from down-trending and started back up, it was clearly pulling the Nikkei along. I don't get it....

[daytradingES]

rc1269, I agree completely. And that does make sense. But I clearly saw the opposite happening tonight, and I don't see how that would be possible. The large moves in the ESZ12 made sense in terms of the election, and they overpowered the Nikkei at several points. Even when the ESZ12 went from down-trending and started back up, it was clearly pulling the Nikkei along. I don't get it....

I'm not sure I can add much - and I'm not sure how long the relationship it you have noticed but I would imagine that ES o/n trades from outside markets after the close following japan and then DAX then dax/ftse. So after Dax opens Nikkei traders will follow Dax as will ES o/n traders. So it will look as if Mikkei is following ES though they both ES and Nikkei are following Dax,

??