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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: shoreco who wrote (84229)	3/4/2004 2:18:20 PM
From: Louis V. Lambrecht	Respond to of 100058

Front/out month plays are more rewarded in the PMs as gold or silver. There you effectively win the carry costs. Translates in a mechanical rally around first notice days (equivalent to the index rollover dates). On the PMs, only 2 contracts really matter, i.e. for gold: Junes and Decembers. Spread is $3 (*100 !!!). For the spoos, with low interest rates, you only can play the diagonal for 1 pt ($50/contract). Six times less. Temporarely. Already hear some commentators now ponddering on the Fed to hike rates. Setiments changes. <vbg>