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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (9214)	7/14/2004 9:27:43 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

990N marketforum.com Key snip: The internal dynamics of index trading and hedging has changed dramatically in recent years. Today the SP 500 futures pit is competing with electronic market alternatives such as the eMini SP 500, eMini Nasdaq 100, Amex SPY and Amex QQQ. The SP pit traders realize the market is changing and they do not like how it is effecting them. So they complain about 990N as a diversion. I think they are creating a problem to justify their inability to adapt. That is a very common defensive response when the ego does not accept the present circumstances. The SP pit traders know the pit is dying. It is dead for all practical purposes now. The eMini SP dollar value volume is 3x - 4x the pit on a daily basis. On Monday June 28, the pit SP traded an est. 29k contracts. The eMini SP traded 569k, the equivalent of 113,800 pit contracts. (569,000 / 5 = 113,800) That is 3.92 times more dollar volume in the Emini SP then in the pit. Plus, if one adds the volume in the eMini Nasdaq 100 to the eMini SP total there is even more lose of volume in the SP pit.