Thursday, September 10, 2009

ES Rollover

The E-mini contract is divided into four quarters; Mar (H), Jun (M), Sept (U), Dec (Z)]. On the 2nd Thursday of these month's the contract "rolls over" from old to new. This is a transitional period that can provide big swings and high volatility as the market makers adjust positions and play the gap between contracts.

Transition into the new contract by adjusting charts, be aware of previous days "old" contract HH/LL as well as the "new" Globex open from Wednesday 1630 and the overnight HH/LL. There are many transitional considerations to be aware of during the day before and, day of, rollover day. Be prepared and plan for it and we can trade like any other day.

Using EWS has helped take the mystery out of these transitional periods as well as being able to plan better for the trading day ahead.

Trade Well !

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