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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (60015)9/20/2002 9:23:26 AM
From: Gersh Avery  Read Replies (2) of 94695
 
remember this futures expiration ..

with a very large overhead short .. just like the last timed.

contracts that are being expired are being bought while the next contract to expire is being sold or shorted.

ie : roll over

looks like it causes downward pressure on the market until the morning the old contracts expire.

reason: only one month is being called the "front month" when generating the "prem" number for computer generated trading programs.

The day the new month starts being used and the future contracts continue to be rolled over, the new contract is only being shorted in this "roll over" effect. This in turn triggers the computer sell programs ..
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