On looking at the way some overnight, particularly Asian equity markets trade, and their relationship to the U.S. markets, i.e., Dow or S&P, it would be an interesting experiment to test say the average maximum range move in the Dow. An example would be comparing settlement to extreme high or low, to the corresponding move on the overnight Aussie market in order to gain an average rate of volume between the two. When this varies greatly a meal may be presented.

For example, last night the Dow was off 140 at the extreme, and the Aussie equity futures where only off 33 on the extreme (which on optic observation is a minimal move on average over x range). Subsequently on the day session, today, the market rallied all day from the open. You could throw in a filter such as gold (as the Australian market has a reasonable leaning to resources), with gold being up five dollars overnight (a large sell-off on the index was very much against the resource sector).





Speak your mind


Resources & Links