Hey everyone! Hope everyone's doing great.
Wanted to just talk about the inevitable arrival of the 23/5 schedule to US equities.
Right now one of the most consistent systematic setups I've personally found definitely revolves around the NY cash open using either the opening range breakout or IB with filters.
Even if futures are already 23/5, the equities open is the ultimate driver of that 9:30 AM volatility spike on equity indices, though I also assume that ultimately some commodity opening volatility or even crypto must be driven by ETFs tied to RTH.
With this in mind I just wanted to know you guy's opinion. I just think I really could be underestimating the impact this will have on all US markets traditionally driven by an 8-hour equity flow. I'm also not sure how the impact of option 0DTE hedging by market makers will work if they continue to expire at traditional RTH, I've noticed gamma from NDXP 0DTEs in particular have a profound impact on calling temporary tops and bottoms, more than SPXW.
While I think most volume will still trade during the schedules we're used to, I feel like its development will be a lot more gradual, a lot more efficient, almost like Forex, not to mention immediate news price-ins and that kind of keeps me on my toes because I feel like things will change dramatically. At the end of the day RTH was a huge constraint that squashed a lot of volume predictably.
What do you guys think? Thanks a lot for reading, in advance.
