I have long been fascinated with the possibilities using order flow information to give insights into economic announcements and the market moves that they create.
Yesterday was NFP day and the market screamed through the bulk of its wondrous ascent in less than 1 minute.
This type of move may be too fast for humans to manage, but the time frame is eons for computers.
Yesterday’s NFP announcement offered a good example of the which way the bots were indicating the direction of the post announcement move.
In the example below, you can see that WIND (lower pane) was strong green throughout the pre-market, with just one dip around 7:15 a.m.
The WOW Index (Green & Red background in the price pane) was solid green for a half hour before the announcement.
Who knows what the headline number is going to be when it comes across the wire?
Well, I gather that there must be a core team of folks at BLS…and they are human.
Also, there must be some pretty smart PhD. Quants working at well funded trading shops who have their own econometric models that they work on in order to gain a statistical edge on the announcement.
There are probably other energies out there focusing on this number that I am not aware of.
What is likely, is that since the announcement of the Unemployment Rate usually moves the market, there are well funded resources being expended to game this move.
In order for these mystery forces to take advantage of the price move, they must place their bets in some sort of publicly traded exchange such as the NYSE or the CME’s GLOBEX.
Once these guys are trading out in the open they have to leave footprints….this is were we come into the picture…well, at least our software, …sceeto, comes into the picture.
We will soon be releasing …sceeto which should give you a leg up on the directional intent of insiders prior to significant market moves.
…sceeto has proprietary order flow algorithms that monitor this type of data….and it monitors lots it, in a very smart manner.
If you would like to be a beta tester for …sceeto, please feel free to reach out to us here.
If you would like a free copy of our S&P 500 Price Magnets for TradeStation you can help yourself here.
Thanks for stopping by.
Carl
