The trading dead zone

26/06/2014 | By | Reply More

It doesn’t happen often, but now and again all things conspire to produce a dead zone in the markets. We are currently in that dead zone.

First off, this relates to the racing markets. Racing markets are seasonal and peak and trough around major meetings. The last was, obviously, Ascot. So you can get a trough before a major meeting, but you almost certainly get one after it.

Summer racing can be a bit weak as there are more meetings and the markets can thin out a bit as volume is spread across the various ‘opportunties’. When Wimbledon is on and a high profile match is under way, that can send additional volume away from Racing. It’s interesting to note actually, that Tennis is inversely proportional to Football / Soccer. So when there is good liquidity if football there is less in Tennis and vice versa.

Of course, this year year we have Wimbledon and the World Cup on at the same time. So that tends to be a double whammy for the racing. So if you don’t like the racing markets at the moment, that’s probably the reason. Unfortunately there is nothing you can do about it. But take the time to experiment in other sports or test and refine what you are doing the existing markets. Normal service will be resumed at some point.

26-06-2014 - Dead zone

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Category: General, Trading strategies

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