c10 JWBT016-Busby October 9, 2008 11:3 Printer: TBD
116 STRATEGIES TO WIN
afternoon. If the V-Factor is registering a reading that is lower than 0.70,
I start looking for an opportunity to short the market because the V-Factor
is telling me that the bears are stronger than the bulls. I will short the S&P
E-mini. Again, this may be a brief play. Sometimes I am in the trade for only
a few minutes, and other times I may hold the position until nearly 8:00
AM—just in front of the opening of the day-trading session in the United
States.Trading After-Hours News
Another way that I use the after-hours market is to trade early-morning
news. Since I have already devoted a chapter to news, I will just briefly
explain the role of the Globex and early news. Many big news events are
released at 7:30AM. The open outcry pits are closed at the time. However,
by using the Globex, it is possible to trade the equity index futures and
make money. Figure 10.1 shows a trade that was made on May 2, 2008.FIGURE 10.1 A 30-minute chart of the E-mini S&P on May 2, 2008.