63 replies to this topic

[Qbre77]

Started this thread so we can all understand how the Alsi works.

 

 

I will ask questions on a weekly basis and see the answers. Remember i only started trading the Alsi for one year now so still learning too...

 

To get the ball rolling ;

 

Question number 1

 

When you buy an Alsi contract via Safex what actually happens? What are you actually buying besides a contract?

 

and if you use IG or another MM, what actually happens then?

 

 

Lets get this rolling and question will be open for a week.

 

 

ps remember what happened today as this will be question number 2

Today the alsiwas trading at times less than 100 p from the underlying and right now 80p below underlying.

HDB u gonna give us some insight into this question? Does buying and selling ALSI contracts have an impact on the underlying market or only the futures market?

[Ettas]

there it is...no considerable movement or am i wrong?

Attached Files

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•  2000.PNG   8.54KB   7 downloads

[HDB]

Question sensei

 

For every long/short opened there has to be another contract....

So how can 2000 contracts go through at once by one guy on the ticker at 11:54;58 am?? that is 66mil boom

could only be MM balancing his books!!

 

If not, that price shuda moved considerably!!

Edited by HDB, 04 September 2014 - 12:18 PM.

[Ettas]

Question sensei

 

For every long/short opened there has to be another contract....

So how can 2000 contracts go through at once by one guy on the ticker at 11:54;58 am?? that is 66mil boom

[Tracer]

Ditto for me !


Sent from my GT-I9100 using Sharenet Sharechat mobile app

[HDB]

Nice try A....but has nothing to do with BIL charts...This is nuts and bolts to understand the Alsi!!

 

Clue: Do not get caught with your pants down on BIL today and think its a short...already down 1.6% in OZZ this morning  and will be about 1.5 to 2% down in London this morning but we should hopefully be sideways to green here in SA !!!

and Bill in SA is .62% higher!!  In LON its down .86%

 

So if you did not know the different ex divi dates, you could got your whole Alsi calcs incorrect!!

[Qbre77]

think it was a tech buy off strong support!!

yea thats exactly why i bought it, but getting very nervous now!

[HDB]

HDB why do you think that SOL is up today when energy stocks in US have been smashed and oil price has fallen ??Just the currency?

think it was a tech buy off strong support!!

[Qbre77]

HDB why do you think that SOL is up today when energy stocks in US have been smashed and oil price has fallen ??Just the currency?

[BuddingTrader]

WElll done BT

 

Note: JSE last day to register is Friday close...FTSE and OZZ for same dual listed shares is Tuesday close

 

So normally Wednesday morning FTSE or FTSE futures will be lower due to divi payout and this can have an implication on JSE!!!

 

Question is why did BIL run yesterday on JSE:

Amswer is BHP LOndon ran up due to divi buyers pushing it up for divi!!

 

Thanks, learning everyday. Noticed that BHP Aus was down this morning but only checked for the dividend after reading the question. I may just be a Trader yet  

[AJS]

WElll done BT

 

Note: JSE last day to register is Friday close...FTSE and OZZ for same dual listed shares is Tuesday close

 

So normally Wednesday morning FTSE or FTSE futures will be lower due to divi payout and this can have an implication on JSE!!!

 

Question is why did BIL run yesterday on JSE:

Amswer is BHP LOndon ran up due to divi buyers pushing it up for divi!!

 

Indeed. It is all about where the price is made and the subsequent FX effect and how that translates back to us.  SAB,BIL,AGL... none of those shares' prices are "made" on the ALSI anymore. Naspers's price is still "made" here although majority of its the factors affecting it lies offshore, so it might as well not be "made" here.

[HDB]

Hi HDB

 

Is it because BHP Aus paid a dividend today and the Aus dollar is up against the rand?

 

 

Regards

BT

 

 

WElll done BT

 

Note: JSE last day to register is Friday close...FTSE and OZZ for same dual listed shares is Tuesday close

 

So normally Wednesday morning FTSE or FTSE futures will be lower due to divi payout and this can have an implication on JSE!!!

 

Question is why did BIL run yesterday on JSE:

Amswer is BHP LOndon ran up due to divi buyers pushing it up for divi!!

[BuddingTrader]

Hi HDB

 

Is it because BHP Aus paid a dividend today and the Aus dollar is up against the rand?

 

 

Regards

BT

[HDB]

Here is my take...should be all within the magic of the charts, trying to understand it better is that the big sellers have not joined the party yet, so your smaller sellers is driving this down and buying as well so therfore you get these zig zag moves (top building) but in the end it gets resolved with a massive impulsive move up or down....!

 

You can clearly see it on the ALSI too, she is making lower lows but coming back each time to touch the resistance that was support, but soon she is going to give way and then blood on the streets!IMO end of September into 2nd week of October (cycle low date) is going to be a blood bath!

 

BIL took a bad hit last week so to me just an oversold bounce!!

 

A

 

Nice try A....but has nothing to do with BIL charts...This is nuts and bolts to understand the Alsi!!

 

Clue: Do not get caught with your pants down on BIL today and think its a short...already down 1.6% in OZZ this morning  and will be about 1.5 to 2% down in London this morning but we should hopefully be sideways to green here in SA !!!

[Ettas]

Can I please just be that kid at the back of the class that makes snide remarks to compensate for my complete lack of knowledge and insecurity 

[Bev]

This is just me - I don't even know what questions to ask - let alone answer!!!!!  So people like myself need more details.

[Argento]

BIL up nearly 1.51% today....

 

Can anybody give me a good reason why?

 

This will be question 3 to understanding the Alsi!!

 

So far very poor response to this thread which means members who know do not want to share their views, or they just do not know how the Alsi works...Sad state of affairs!!

Here is my take...should be all within the magic of the charts, trying to understand it better is that the big sellers have not joined the party yet, so your smaller sellers is driving this down and buying as well so therfore you get these zig zag moves (top building) but in the end it gets resolved with a massive impulsive move up or down....!

 

You can clearly see it on the ALSI too, she is making lower lows but coming back each time to touch the resistance that was support, but soon she is going to give way and then blood on the streets!IMO end of September into 2nd week of October (cycle low date) is going to be a blood bath!

 

BIL took a bad hit last week so to me just an oversold bounce!!

 

A

[strydomk]

I will take a stab in the dark. The copper price???

[HDB]

I just do not know!

There is a reason and I was expecting it too....

 

actually by close today, I reckon it will be up  nearly 2%

[Qbre77]

BIL up nearly 1.51% today....

 

Can anybody give me a good reason why?

 

This will be question 3 to understanding the Alsi!!

 

So far very poor response to this thread which means members who know do not want to share their views, or they just do not know how the Alsi works...Sad state of affairs!!

I just do not know!