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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading:

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To: Arthur Tang who wrote (624)5/28/1998 7:14:00 AM
From: Arthur Tang  Read Replies (1) of 769
 
S&P500 futures was touted as an indicator on Wall street markets at CNBC. Like all other indicators, CNBC did not understand human psychology. People who short large stocks in the S&P500 index, will short the index futures. But the people who sold the futures short contracts, will push the index up at the end of the day to take the money from those people who manipulated and shorted the futures. The reverse is also true.

But it takes 5 point in the S&P500 index to make it worthwhile. 2 points is neutral. If the index goes up more this year; it will take even more points to trigger the human psychology.
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