:: actio-et-reactio ::
amg's market charts and blather
Balance is but a brief transition between extremes.
Content: amg
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"I think this is a good move for the CME. And, quite frankly, it should have been made a long time ago. If you think about it, day traders are trying to pick up ticks. A few ticks here, a few ticks there, lose a few here etc... NQ's problem has always been a lack of ticks.Here a a text file of the original announcement.
You could look at it this way: the NQ contract has a ATR(10) of about 25 points. At two ticks per point, that's about 50 ticks per day. The ES has a ATR(10) of about 13 points which is also about 50 ticks per day, but the ES ticks are worth $2.50 more than the NQ with much better liquidity.
The contract I feel has them both beat is the YM. The YM has a ATR(10) of 95. A one point per tick, that equals 95 ticks per day; almost double that of the NQ or ES. Even thought the ticks are only worth $5.00, day traders have more opportunities to pick up several ticks throughout the day. And the volume on the YM is growing rapidly.
This move by the CME will put the NQ on par with YM in terms of number of ticks per day and price per tick. I think this is an effort to take back some of the volume that has found its way over to the YM contract. I know I'll take a second look at the NQ after this change."
Labels: market-buzz-gurus
|
moon phases |
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows