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Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (4646)	11/18/2000 3:14:07 PM
From: Chip McVickar	Read Replies (1) \| Respond to of 8925

>> The question we were driving at however is volume on SnP and selected other markets. What we were saying is that one cannot analyze what is not provided by the Exchange. << Pat, Here's what R. Arms has to say on Stock Market Futures S&P: "Trading Without Fear" Page 208 "To trade the futures market I look at the market itself, rather then the futures contract....and the market average and volume are less erratic..., I prefer to use the underlying market and the overall market statistics in making decisions that lead up to the actual trading (the futures contract). I trade the time frame that this work (equivolume) seems to be best for---positions that last a few days to a few weeks." And About Commodities: Page 206 "utures contracts have a limited life, with no volume or open interest when they first start to trade, then building and disappearing at delivery. Best way to cope with this is to chart the price of the contract being traded, but use the volume figure for all the contracts. So chart the front month price, say for wheat, but use the volume for all the wheat contracts in the market." Trading Limits---these also distort both price and volume. "There is no real way to cope with this, except to be aware of it...it is not usually a problem when using Equivolume charts."