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Strategies & Market Trends : The Home Run -- Ignore unavailable to you. Want to Upgrade?

To: gold 77 who wrote (355)	9/23/2006 8:03:02 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 525

I used to play the spoo but have been out of that game for a bit. Here and there, but not several times a day anymore. Hard to positionally trade the spoo. Whipsaws every day. However, it shows a negative Divergence and trading it from the Short side seems like the play, I would agree. DJ Futures were harder to trade because they used to be pretty thin. I don't follow the OI on DJ so I'm of no help there. Like the PM (Precious Metals) Market the spoo market can be manipulated so you have to watch for head fakes before the market actually gives you a valid signal. The Signal now is lower but it can be taken up before it's taken down. It's a lot of work to trade the spoo. People get sucked in and get pounded. The risk reward. Used to be $500 a contract. Now it's $250, the mini came in and it's $50. With these low numbers there comes a lot of Volume that's Program related. The small trader has to ride out the Program spikes and dips. It's another market that you have to watch every second. In October of 97 or 98 I was Short for a ride of perhaps 135 points, the next day it ran up maybe a hundred points. It requires a lot of work. I hope you do well with it, you must watch it constantly though. ------------- Gold still hasn't hit a number where I could say that I would own it from a positional point. My average Contracts are at 583.3 A Close above 604 would probably have me add and place a Stop around 578.