Strategy Spread: Spot CCY vs. Crosses, Stock Futures as Indicator

While taking a que of the Stocks Indices Futures market, the price recovery in Europe has somehow provided a support at the opening prices for the 3 major indices. The Globex market including futures have provided the better alternative to implement strategies that can the least be used as an arbitrary trade either to position a trade in the European session before the US market opens.

No other than a futures strategist / trader has better understanding of how futures can best serve investors especially in Asia that can have access to better liquidity and execution when applied with while awaiting for the economic data. Again volumes increases in this volatile price action where a triple digit decline and a price pull back gives day traders the flexibility to move in & out on both directions by using these 3 major markets.

The relative trade strategy of utilizing Dow/ SP500 & Nasdaq futures for an expected price pullback is an excellent approach either timing an entry position within the trend or carry a short-term corrective move over a certain period of time. The extended decline has already been confirmed with the past two consecutive quarters now has reflected a negative bias for stocks. Which somehow was cemented by the contagion market from China. This includes Asian markets to the list. However, @megatrade101, we do not discount the probability although slightly that there could still be an attempt for a price recovery within the 4th quarter trading for the year. 

Meanwhile, in Asia the JPN225 (Nikkei Average) have taken the lead of decliners by breaking the 17k benchmark previously set on its way higher and reaching the 20932 high (July 2015) and continued to decline at its current levels @17150. A well defined major correction within a major trend has transpired and there is only one quarter left for an attempt to be positive but chances are quite slim at the moment.

As of the current market condition, the Euro has been quite supported with the cross rate currency pair primary with Cable and Yen. As the USDJPY has held well in a tight range while the EURGBP have remained in a positive tone for the past few sessions.