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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Dominick who wrote (14323)	10/3/2001 11:39:13 PM
From: Dominick	Read Replies (1) \| Respond to of 18137

Are there any Prime rate pundits on board? If so, I have a question. I'm considering a floating rate consumer equity loan tied to the prime rate. Guaranteed a rate of 4.5% for 6 months. Thereafter on the 15th of each month the rate changes to the actual prime rate. My question is how long do you think the prime rate will stay under 7.5% due to the crippled economy? TIA, Dominick

To: Dominick who wrote (14323)	10/3/2001 11:49:05 PM
From: Dan Duchardt	Respond to of 18137

Dominick, So if the NQ Z1 is down 15 points the composite will open 15 points lower and the S&P 500 would also if it's e-mini were the same? The NQ is actually tied to the Nasdaq 100, NDX, so you would expect the correlation to be stronger with NDX than with COMPX. It does not follow that if NQZ1 is down 15 points the NDX will open 15 points lower, primarily because the futures trading day ends 15 minutes after the regular market closes. You really need to see where the futures are in relation to 16:00 the prior day, not the close at 16:15. Same is true of the ES and SPX. The difference between 16:00 and 16:15 is sometimes significant. The "fair value" calculation prior to market open is where the futures should be in relation to the prior day close. Of course they are freely traded and so they can be way above or way below fair value. When the market opens, the futures and the index get back more or less in synch with the difference reverting to more or less fair value. So how much extra are we talking about in dollars and cents for interest opportunity cost? Here is a place to get that information every day. The calculation involves a bit more than just interest. It also involves anticipated dividends on the stocks in the index. Click on the Fair Value link. programtrading.com Dan