you can't take a call on spread on the basis of outrights in europeon hours

at 12:15 i can see that S&P has fallen by 160 ticks from yesterday's high, and euro stoxx had not fallen that much..i was very sure that S&P and euro stoxx both will fall because there is an unfilled gap at 1065 which is still 40 ticks below the current price, and it behaved as expected...the spread was at 1505 before 12:30 i.e. euro stoxx opening, and spread opened at 1531 and rose upto 1544 within a minute, and both S&P and euro stoxx fell like hell

the total range of the day cant be predicted from initial half hour movement of the spread today, the thanksgiving dat spread moved 3 ticks in first 15 minutes and first 30 minutes it moved 5 ticks , only but in 4 hours the range was 31 ticks which is highest i have seen in europeon hours in last 3 months

traders diary

a new rule for trading spread has come in mind..suppose spread has made a low at 1532, then go short 1 lot at low+9 ticks i.e. 1541, 2 lots at low +10, and 1 lot at low +11......book profit at 4 ticks only..if it goes agaonst you without giving hiting the profit target, average with 4 lots at open +15....

book all of the 8 lots at open +10...now next valid short is only at open +15 and average it at open +20..book profit for open +20 short at 5 ticks, and for open + 15 book profit of 4 ticks..

the entry at open +15 is valid till 8 pm for 4 ticks profit

the spread made a low at 1523 today, 26th nov., 2009, the thanksgiving day, emini addict people were saying the falling S&P will retarce, and i thought that if S&P has to go up, the euro stoxx will also go up and will lead because there are very less no. of traders from USA in the market...at least the last prediction was correct but both markets fell like hell it retraced from just 8 ticks above R3 but till then the spread moved up and touched 1553....the average range of spread is 22 days in last 3 months for the whole day but today it made a range of 30 in 3 -4 hours...i have seen a loss of around 1100 with 8 lots in.. now the spread is back at 1545.. i have removed 2 lots , 1 at 1548 and 1 at 1546..

now my loss is 247