The legal close for the futures contracts ES, NQ and TF e-minis is 4:15pm ET.
509th Bomb Wing
The 509th Bomb Wing has a rich history that goes back to the B-29 Squadron that ended World War II. READ MORE
On a US Navy Carrier, AirBoss coordinates the entire flight operations, with a rank of Commander. At Hamzei Analytics, we are indeed privileged to have Nancy Scott as our AirBoss. With a BA in Mathematics and experience as an IT professional, she overseas our prop data collection from California. We are indebted to her for numerous contributions over the years.
Akula, meaning "shark" in Russian, is a nuclear-powered attack submarine (SSN) first deployed by the Soviet Navy in 1986. Twelve were commissioned from 1984 thru 2001. In index trading, shorts drive Akulas.
All Systems are GO
All Systems are GO is clear sign that all HA Servers in SoCal (i.e., Put/Call & PBT), and PCs at HA HQ in Chicago (i.e., AWACS, Hawkeye), are up and tuned into the incoming market data and all three Streamers (HFT1, HFT2 & PBT) are fully functional. In the mornings, before this signal is issued, please refrain from pinging Fari. It is denoted by a "rooster" sound in the chatroom.
An Analog is normalized chart that depicts current price action vs a previous period and, as a roadmap, will serve as an additional market timing tool. The relationship between the two time series is often shifted by a few weeks and can even temporarily get inverted for a very short period of time. All Analogs will fail at some point, but we shall look to them as goalposts till the relationship between current price action and previous period's price action is broken. Here are couple examples of recent Analogs: SPX 2015 SPX 2016
Auntie Janet stands for the venerable Dr. Janet L. Yellen, who is now serving her first term as the Chair of the Board of Governors of Federal Reserve System.
AWACS is nickname of Fari's first souped-up Server PC workstation, custom-made by DELL, and located at our Chicago office (HA HQ). AWACS provides real-time vector direction for bogies (live high-value [price] targets for high-beta stocks or futures trades). AWACS features an algorithm-driven high-speed-optimized code for, among other tasks, NYSE BUY/SELL Programs Trading & an adaptive BLOCK TRADE Detection Protocol for ES & NQ Futures and large MarketCap stocks. This Sever PC is named after E-3 Sentry Aircraft.
44th President of US, Barack H. Obama
BLOCK TRADE is when the volume of one trade exceeds the moving average of the trade volume of that asset by at least an order of magnitude over x minutes of look-back period. AWACS' and Hawkeye's precise parameters for ES and NQ are proprietary. It is denoted by a "cow" sound in the chatroom.
Bogie refers to a false blip on a radar display. The term is also used to describe radar echoes that occur for unknown reasons, especially in the military, where such a signal might indicate hostile aircraft. In our trading vernacular, these are price targets that AWACS projects and then assigns a probability to.
BTH mode of AWACS one megawatt Pulse-Doppler Radar stands for Beyond-the-Horizon and it is for detecting aerospace vehicles flying medium to high altitudes. In our HFT trading room, our AWACS' and Hawkeye's outlier targets (those with low probability of reaching) are tagged as BTH.
We monitor large institutional program trading activity. Buy Program is when they buy a basket of large cap stocks and hedge their position in the underlying futures market concurrently. It is denoted by a "freight train" sound in the chatroom.
CNSN which stands for Cape Naples Soup Nazi, is a small dive in Cape Naples, FL, where WLSN relocted to in Q3 2016. CNSN's exact GPS location is classified, courtesy of NSA special covert ops directorate.
A car is a pit lingo for one contract in futures.
Circular Error Probable, in military science of ballistics, is an intuitive measure of a weapon system's accuracy. It is defined as a circle, centered about the mean, whose boundary is expected to include 50% of the population within it. READ MORE
The Central Intelligence (CI) study is ideally suited for trend- and momentum-based trading. It's configured to respond properly for intraday trend detection during the opening hours of the trading day. This is the ideal momentum indicator for day trading high-beta stocks, sector ETFs or futures on a gap-up or gap-down day. READ MORE
CI Diff Indicator
The Central Intelligence Difference (CI Diff) study is an anticipatory derivative indicator of the CI Indicator. For high leverage trades, the CI Diff Indicator acts as an early warning for upcoming trends in the CI Indicator. CI Diff is only available on our PBT Streamer.
As traders, we need to reward ourselves for first, great P/L performance and 2nd good discipline in light of the price action, every day that we excel at both. Fari loves Cuban Cigars and thus the word COHIBA DAY for days he has coined serious shekels. Chicago is an expensive city to live in!! Romeo Y Julieta
Former Treasury Secretary Henry Merritt "Hank" Paulson, Jr. US Gov twice awarded him the Order of Lenin, first one, in March 2008, for the BSC bailout, and the second one, in September 2008, for FNM / FRE / AIG Bailouts.
Dual CI Indicator
The Dual CI (DCI) study can be used to look for non-conforming bullish and bearish divergences. Because the inputs of the DCI indicator are user-definable, the user can manipulate and / or optimize it for different markets and / or different bar intervals. A divergence occurs when a price revisits a recent channel breakout high or breakdown low while the accompanying indicator fails to do so. Market technicians call it a non-confirmation. Divergence typically provides entry points with an acceptable risk-to-reward ratio. READ MORE
Daily Resistance Levels
Daily Resistance Levels (DR1, DR2 & DR3) denote three increasing measure of market overbought conditions. Each day, a number of traders begin their trading day with plans to fade, or sell into, these levels. The Resistance lines are usually drawn in RED. READ MORE
Daily Pivot Level
Daily Pivot (DP) is synonymous with 'fair value'. This is the neutral price zone or expected value. Pivot line is drawn in YELLOW. READ MORE
Daily Support Levels
In like fashion, Daily Support (DS1, DS2 & DS3) denotes three increasing measure of oversold conditions. Similarly, each day, some traders' plans include fading, or buying at, these levels. The Support lines are usually drawn in GREEN. READ MORE
Directional Volatility Indicator
The Directional Volatility (DV) study is an indicator that helps you avoid being in the markets during Small Range days and, rather, focus on taking a 70% chunk out of a directional move during the Big Range days. READ MORE
DPM which stands for Designated Primary Market Maker, is a member organization that is approved by CBOE to function in allocated securities as a Market-Maker on the trading floor. DPMs may apply to be allocated new listings (or classes being reallocated from another DPM organization) thru an exchange sponsored solicitation process. The appropriate CBOE Committee will allocate the products based on performance, capacity, performance commitments, efficiency, competitiveness, and operational factors. Each DPM organization must own at least one membership and own or lease the appropriate number of additional memberships to cover the cost of their option class allocations (text from CBOE website).
EAM stands for Emergency Action Message, part of our Flash Message Traffic for our battlegroup commanders. Watching Crimson Tide one more time will be very helpful.
ES is the symbol for E-mini SP 500 Futures (trades electronically only, 24 hrs a day on GLOBEX). It is one-fifth of the Big Contract (SP, which is traded in a pit at CME). Unless indicated otherwise, all references in our trading room communications to ES is to the front month contract.
Exchange Traded Fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.
By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order.
Fair Value is the theoretical value at any given time, that an equity index futures front month contract, i.e., ES, should trade above its underlying cash index, i.e., SPX, due to the time value of money. Intraday, its value may change by a small amount. Four times a year, on Equity Index Futures Expiration Day, Fair Value, by definition is zero. That is why roll to new contract approximately a week earlier.
If the actual value, i.e., $PREM, deviates from Fair Value by a large percentage, it often triggers BUY or SELL Program Trades by big market participants. We continuously compute Fair Value for both ES & NQ futures, in real-time, as inputs, among other internals, for a proprietary Excel worksheet running in both AWACS and Hawkeye.
H-Hour is the time of day at which an attack, landing, or other military operation is scheduled to begin. In day trading, it starts M-F at 1400 CT, when institutional players begin to move the Cash Market.
A handle is the pit lingo for one full point move in futures. In ES that is worth $50, in SP $250 (5x ES). In like fashion, in NQ it is worth $20 and in ND $100 (5x NQ).
Hawkeye is nickname of Fari's second souped-up Server-PC workstation, custom-made by HPQ, and located at our Chicago office (HA HQ). Hawkeye acts as the primary backup for our coveted AWACS Server-PC to provide real-time vector direction for bogies (live high-value [price] targets for high-beta stocks or futures trades). Much like our AWACS, Hawkeye features an all algorithm-driven high-speed-optimized code for NYSE BUY/SELL Programs Trading & an adaptive BLOCK TRADE Detection Protocol for ES & NQ Futures and large MarketCap stocks. This PC is named after E-2D Hawkeye Aircraft.
High / Low TICK Readings
Very HIGH ( > +1000) or Very LOW ( < -1000) TICK Readings often mark the exhaustion point in an intraday move, in normal markets. Be ready to modify your short-term position (or sentiment) by going flat or reversing. In very bullish or bearish markets, these levels are automatically modified by our AWACS and Hawkeye Server-PC workstations.
HOUSTON is where the trading gods oversee our Markets. They watch over us, as Johnson Space Center at Houston, does for NASA space flights. We coordinate our trades, provide them feedback and thank them when they move our markets according to our plan!
A Hunter Killer Sub, is a Seawolf class nuclear-powered fast attack submarine (SSN) in service with the United States Navy. The class was the intended successor to the Los Angeles class, ordered at the end of the Cold War in 1989. At one time, an intended fleet of 29 submarines was to be built over a ten-year period, later reduced to twelve submarines. The end of the Cold War and budget constraints led to the cancellation in 1995 of any further additions to the fleet, leaving the Seawolf class limited to just three boats. Seawolfs look for and hunt down Akula and Typhoon Subs. Seawolfs have supported JSOC Ops in certain theaters for delivery and extraction of SEAL Team 6. In index futures trading, longs deploy Seawolfs at key price points to flush out the weak shorts.
In the Market Profile vocabulary, IB stands for Initial Balance. It is the Range (High minus Low) of the First Hour of the Regular Trading Hours (RTH) of any asset.
In aviation, IFR stands for Instrument Flight Rules. In trading, that is new school. It means trading based on charts, quantitative measures, put/call ratios, technical analysis, etc.
Intraday Volume BreakOut Indicator
The Intraday Volume BreakOut (IVBO) study helps you identify upcoming moves during seemingly sleepy hours of the markets, hours often used by smart money / hedge funds to mask their true trading intent (i.e., accumulation / distribution). READ MORE
ETF for trading the Russell 2000. Its value is 1/10 of RUT, and by comparison also 1/10 of TF. It is very liquid with high volumes and trades in penny increments.
JDA stands for Jimmy Dean Algos. That is when prop shops' (sausage makers) algorithm-driven trading takes over, most likely during slow markets. Retail traders are better off avoiding those pricepoints.
The Joint Direct Attack Munition (JDAM) & Laser-guided JDAM are guidance kits that convert existing unguided gravity bombs, or "dumb bombs", into all-weather "smart" munitions for precision strikes. In trading, we try to enable our HFT Subscribers, via our proprietary trading indicators, chart steamers and on-the-run live audio commentary by time-tested & proven professional traders, to improve his/her win to loss ratio by precision entries and exits.
LAC stand for Loud & Clear (aka 5x5). It is used for Streaming Audio in checking its global reach when Fari goes ON THE AIR. It is normally accompanied by location of the Member.
LBR Flag Pattern
LBR Flag Pattern works well during market sell-offs. Prices drop very fast at the outset, make a small reaction, typically hit a 18 or 50 period moving averages and then head south again in a big way. Usually completes during the last hour of trading. But the set up could take a couple of hours.
MA stands for moving average. We use simple MAs.
MAC stands for the Military AirLift Command which does most of the heavy lifting in any conflict. In HA, it is the name of a special HA proprietary [basketing] algo for detecting non-confirmation divergences during ES or SPY trades. Does NOT apply to NQ or any other asset.
Max Q stands for the point of maximum dynamic pressure during the ascent of a rocket. In trading, it means going thru a heavy resistance area and/or rapidly going thru three sigma levels or more on a chart.
Market Bias Stop
My [new & improved] Better Half. She is uber wonderful. A word to the wise: be careful what you wish for. Favorite hashmarks are #neveradullmoment and #nomoreblondeinterns.
The McClellan Oscillator is a market breadth indicator used by financial analysts of the New York and NASDAQ Stock Exchanges to evaluate the rate of money entering or leaving the market and interpretively indicate overbought or oversold conditions of the market. Developed by Sherman and Marian McClellan in 1969, the Oscillator is computed using the exponential moving average (EMA) of the daily ordinal difference of advancing issues (stocks which gained in value) from declining issues (stocks which fell in value) over 39 trading day and 19 trading day periods. The simplified formula for determining the Oscillator is: Oscillator = (19-day EMA of Advances minus Declines) - (39-day EMA of Advances minus Declines). Critical levels to watch are +150 for overbought and -150 for oversold.
MIV stands for Market Implied Volatility. Please see our Glossary & Tutorials for more detail.
Monthly Resistance Levels
Monthly Resistance Levels (MR1, MR2 & MR3) denote three increasing measure of market overbought conditions. Each day, a number of traders begin their trading day with plans to fade, or sell into, these levels. The Resistance lines are usually drawn in RED. READ MORE
Monthly Pivot Level
Monthly Pivot (MP) is synonymous with 'fair value'. This is the neutral price zone or expected value. Pivot line is drawn in YELLOW. READ MORE
Monthly Support Levels
In like fashion, Monthly Support (MS1, MS2 & MS3) denotes three increasing measure of oversold conditions. Similarly, each day, some traders' plans include fading, or buying at, these levels. The Support lines are usually drawn in GREEN. READ MORE
MOC stands for Market On Close. MOC Orders' Imbalances are what NYSE specialists & NASDAQ market makers track during the last half an hour of each trading day. As active ES (S&P-500 E-mini Futures) traders, we are interested in SPX-only MOC.
NFP stands for Non-Farm Payroll. It is released as a part of the Employment Report by US Dept of Labor at 0730 CT on the first Friday of every month. This is the most important economic data affecting the US Treasury Bonds, Notes, Stock Index Futures and US Dollar prior to the Cash Markets' Opening Bell.
NQ is the symbol for E-mini NASDAQ-100 Futures (trades electronically only, almost 24 hrs a day on GLOBEX). It is one-fifth of the Big Contract (NQ, which is traded in a pit at CME). Unless indicated otherwise, all references in our trading room communications to NQ is to the front month contract.
OC stands for Option Chain. Simply, it is all of Call and Put contracts for all the months, including long term options (LEAPS) for a given underlying asset.
OTF stands for Other TimeFrame [market participants]. It is the chart that depicts how the very large players are trading a given asset.
PBT stands for Proprietary Basketing Technology. This product is only available by invitation. It is a browser-based package with dedicated server, streamer, chatroom and historical charts archive. It is ideal for stock index futures traders who trade size.
PCR stands for Put/Call Ratio. Unless indicated otherwise, all references in our IM communications to PCR is to the DOLLAR-WEIGHTED Put/Call Ratio($wPCR). Please see our Glossary & Tutorials for more detail.
PDI stands for Poor Dumb Immigrant.
PIQ stands for Position In the [Order] Queue. Shows where your specific order is, compared to others [at a particular price]. Certain exchanges do not report cancels due to bandwidth issues. So it is the worst-case scenario.
Plunge Protection Team aka the "President's Working Group on Financial Markets" was established by law in 1988 to buy the markets should declines get out of control. It is suspected by many market watchers that PPT has become far more interventionist than was originally intended under the law.
There are no minutes of meetings, no recorded phone conversations, no reports of activities, no announcements of intentions. It is a secret group including the Chairman of the Federal Reserve, the Secretary of the Treasury, the Head of the SEC, and their surrogates which include some of the large Wall Street firms.
The original objective was to prevent disastrous market crashes. Lately it seems, they buy the markets when they decide the markets need to be bought, including the equity markets. Their main resource is the money the Fed prints. The money is injected into markets via the New York Fed's Repo desk, which easily shows up in the M-3 numbers, warning intervention was near. As of April 2006, M-3 is no longer reported.
Quadruple Witching Friday
Simultaneous expiration of Stock Index & Equity Options, and Stock Index & Single Stock Futures. Occurs on the third Friday of last month of each quarter.
R/T stands for real-time.
In US Navy F-14D SuperTomcat, RIO stands for Radar Intercept Officer and operates the AWG-9 X-band Radar with Track-While-Scan capability.
Russell 2000® Index
Russell 2000® is the recognized benchmark measuring the performance of the small-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes 2000 of the smallest securities based on a combination of their market cap and current index membership.
Russell 2000 Index
RUT is the ticker symbol used on most trading platforms for the Russell 2000® Index. Also commonly used is ^RUT.
In the Navy, a sailor is the entry-level recruit. In trading, sailor is a novice trader, typically gets in very late in the trades and thus finds himself/herself long at the very top and short at the very bottom. Sailors feed OTFs.
Seventy percent (70%) of the time, markets are NOT trending and they are range bound. In those days, the retail traders do not make money. Rather, they feed the Grinders (sausage makers): pit traders, prop shops, market makers, etc. And of course, the brokers are smiling all day. The other thirty percent (30%) of the time, in time-honored words of Gen George Patton, we shall skin them.
SCW stands for Sigma Channel Width. It is the normalized value of the +3 sigma price minus the -3 sigma price of an asset. It is a real-time measure of price volatility of an asset. It is very useful for visual detection of the commencement, and/or completion of an existing a trend. READ MORE
In the US NAVY BoomerLand, SDP stands for Strategic Deterrent Patrol (i.e., see http://www.navy.mil/search/display.asp?story_id=42793). At HA, SDP stands "Special Detrending Protocol." This algo is still in its infancy and is going thru extensive REAL-TIME walk-forward Test & Evaluation regimes. It is derived from the VWAP concept and it is designed for use in short/term (multi-day) trend detection of a high leveraged, high-beta asset.
We monitor large institutional program trading activity. SELL Program is when they sell a basket of large cap stocks and hedge their position in the underlying futures market concurrently. It is denoted by a "gong" sound in our chatroom.
In statistics, Sigma means standard deviation from a mean. In trading, when we say "GOOG is at +2 Sigma," it means Google is trading at 2 standard deviation above its mean, hereinafter its 20 day moving average (i.e., it is at Upper Bollinger Band). As avid students of volatility, we monitor prices using +3, +2, +1, -1, -2 and -3 Sigma Channels. This method tells us how "stretched" the prices are. A good long trade normally is when prices move between +1 and +2 Sigma Channels. Conversely, a good short trade normally is when prices move between -1 and -2 Sigma Channels.
Anything beyond +/- 3 sigma channel is an outlier event. READ MORE
||Probability of Asset Price Travel
|+1 to -1
|+2 to -2
|+3 to -3
|+4 to -4
|+5 to -5
|+6 to -6
TF is the symbol for E-mini Russell 2000 Futures (trades on ICE). Unless indicated otherwise, all references in our trading room communications to TF is to the front month contract. The TF trading hours are from 8pm ET - 6PM ET. At 4:15pm ET, the TF day session closes; trades after 4:15pm until 9:30am ET are considered overnight trades. TF opens for the week at 6pm ET.
TLT- iShares Barclays 20+ Yr Treasury Bond Bullish ETF. Long term US treasuries represent a "safe haven" asset class that appeals to investors when downside risks are prevalent in equity markets. Therefore, TLT generally has a strong negative correlation with SPY. TLT bullish = SPY bearish and vice versa.
Tickets are headfakes that the Volunteers (see V Corps) will opt for. LOL.
Toaster is where a Volunteer's (see the V Corps) trading account most likely will end up at. Yes, butter [and/or cream cheese] is extra.
Triple Witching Friday
Simultaneous expiration of Stock Index & Equity Options, and Single Stock Futures. Occurs on the third Friday of first two months of each quarter.
Uncle Ben stands for the venerable Dr. Ben S. Bernanke, former Chairman of the Economics Dept. at Princeton University, who is the former Chairman of the Board of Governors of Federal Reserve System.
VBars stands for Vertical Bars. It is part of our Proprietary Basketing Technology package used by our pro ES & NQ traders. It often marks a short-term bull or bear trap.
In aviation, VFR stands for Visual Flight Rules. In trading, that's old school. Trading by feel and guts, often gauging the fear and greed of the herd, mainly based on previous market experiences.
Volunteers, aka the V Corps, are those fairly new to trading high-leveraged derivative positions, and usually, trading in an under-capitalized account. They typically get in too late into the trade -- long or short, that is not the issue -- and, as you guess it correctly, get trapped at the price extremes. They then resort to praying/wishful thinking, for their position to come back, instead of, taking immediate evasive actions. You can spot them from their emotional comments on Twitter Streams and/or their smell [of their diapers].
VWAP stands for Volume-Weighted Average Price, the ratio of the value traded to total volume traded over a particular time horizon (usually one day). It is a measure of the average price a stock traded at over the trading horizon.
In US NAVY, WEPS stands for Weapons Officer. In the US Navy BoomerLand, WEPS programs each missile according to the targeting package chosen by NCA (as received via EAM) and has sole access to the tactical trigger which acts as a failsafe during a SLBM launch sequence.
WLSN which stands for West Loop Soup Nazi, is a small dive in Chicago West Loop, with great ethnic soups (very similar to this Seinfeld Soup Nazi Episode shown here) where Fari often escapes to for lunch. In Q2 2009, WLSN doubled his prices, stopped accepting US Dollars, and his menu was priced in Euros only. LOL. In early December 2009, after the Dubai Debt Crisis (circa Thanksgiving), WLSN started accepting Chinese Yuans, in addition to Euros. And, since early January 2010, he began accepting US Dollars again. Frankly, we think his next move is to accept a basket of currencies for his over-the-top ethnic soups, much like the DX. In June 2010, he began accepting assayed gold coins. We surmise that he was a hedge fund manager before the 2008 financial melt-down. WLSN's exact GPS location is classified, courtesy of NSA special covert ops directorate. WLSN should not to be confused with Al Yeganeh's The Original SoupMan Soups. They do not have a store in Chicago.
WPDI is name of our HFT Audio Feed. LOL. You need to login to our HFT DeskTop to hear Fari's LIVE on-the-run trade commentary while he trades with occasional comments on current events that may impact trading plus his favorite 70's and 80's rock bands in the background.
Weekly Resistance Levels
Weekly Resistance Levels (WR1, WR2 & WR3) denote three increasing measure of market overbought conditions. Each day, a number of traders begin their trading day with plans to fade, or sell into, these levels. The Resistance lines are usually drawn in RED. READ MORE
Weekly Pivot Level
Weekly Pivot (WP) is synonymous with 'fair value'. This is the neutral price zone or expected value. Pivot line is drawn in YELLOW. READ MORE
Weekly Support Levels
In like fashion, Weekly Support (WS1, WS2 & WS3) denotes three increasing measure of oversold conditions. Similarly, each day, some traders' plans include fading, or buying at, these levels. The Support lines are usually drawn in GREEN. READ MORE
Warm Up Trade Size
This is the first trade of the morning for a daytrader. By having a "skin in the game," one truly gets into the market tempo. So the correct size, as a percentage of account's unencumbered funds, is a very crucial decision here.
Zulu Time (UTC, GMT)
Coordinated Universal Time (UTC) is the primary time standard by which the world regulates clocks and time. It is one of several closely related successors to Greenwich Mean Time (GMT) better known to aviators and sailors as "Zulu." For most purposes, UTC is used interchangeably with GMT, but GMT is no longer precisely defined by the scientific community.