Personally this is also something that I look at too and so far, to me, it looks relatively reliable. However it DOES NOT work all the time, so just take it with a pinch of salt.
*Disclaimer : What ever appears on the blog is for your own reference only. It is not an investment/trading advice. It is always best to consult your personal financial adviser before parting with your money.
In memory of Mr Lee Kok Beng - a former CNA forumer, as he was reportedly to have passed away earlier this year, I will like and hope that his Warrant Trading System can be passed down for anyone who is interested to apply his way of trading the warrant markets.
His method is so far applicable in the Singapore Warrant Market, so I'm not sure if it may work in any market other than from Singapore.
The below is his suggested trading rules to decide whether to open an overnight position :
- 4 pm wait for Hong Kong market to close
- 4 pm ~ 4:30pm look at Dow Jones futures and European market whether they move in the same direction eg up or down
- If DJIA futures is >+30 points then buy HSI call warrants
- If DJIA is <-30 points then buy HSI put warrants.
- If the DJIA value is between -30 and 30 points then stay sideline.
If an overnight position has been opened, then now it's the time to close the position. An important to always keep in mind that, the position must be closed without greed and fear. Here it is the rules :
- Check the US market overnight closing before Singapore market opens.
- If US and Asian markets (ie japan and Singapore stock markets) close down, then cut loss immediately when singapore market opens or before HK market opens.
- If Singapore market is up, then it's time to take profit before HK market opens.
About the Hong Kong and Singapore operating hours :
Singapore Exchange :
- - 9 am ~ 12:30 pm
- - 2 pm ~ 5 pm
Hong Kong Exchange :
- - 10 am ~ 12.30 pm
- - 2.30 pm ~ 4 pm
* Gotten from http://stockpage.blogspot.com/