Note re: E-mini algo traders

Mon Oct20 (NY) - by Anatoly Veltman - Chief Global Analyst - Hard to believe: this now played out two nights in a row. Again (this time an UPWARD) crawl was met with orders manifested at 5.40am Monday, pre-placed against the US late 987.75->931.75 move, at precise 61.8% retracement 966.25 European session high. To repeat, the distinction I'm making is that new (overnight) low for the move of 925.5 didn't go into order placement process. We first noticed same in the previous overnight session early Friday: the retracement bids in the books were pre-placed based NOT on Asian high (955), but rather based on US high of 950. That is: the 4.01am low came in at 38.2% of US range 865.25-950; and gave rise to a 12 point bounce. The final European low at 5.58am was registered at 50% of that 865.25-950 US range. So this minute variation is proving consistent, and it may give one some insight in regard to fund algorithm: which may be set as of US range - as opposed to "living breathing" range developing overnight . . . (to read the remainder of this article, please log in below.)