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


To: Proud Deplorable who wrote (81130)7/7/2008 6:28:12 PM
From: mishedlo  Read Replies (1) | Respond to of 116555
 
There is no doubt in my mind that speculators are play a role. I just cannot quantify it. Hussman did not describe the process well.

When there is an increasingly upward bias in contracts (new positions taken every month), price is likely to rise. Yes contracts that are rolled over equates to one buy and one sell, in theory netting out, but what happens at roll over time if there are three new positions for every 2 that were closed?

I think that is positive price pressure and it has been happening.

Mish