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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: rcksinc who wrote (109232)	8/3/2018 12:32:32 PM
From: GROUND ZERO™	Respond to of 221191

Right now they're at just about the same price... below cash is typically bearish and above typically bullish... but right now it's almost dead on... and the closer it gets to contract expiration they move closer to each other... notice that December is 5 points above cash, so that's typically bullish since it's above cash... As we approach December expiration we'll see the Dec futures and cash move closer to each other... The futures markets were originally created to protect the farmers, both agricultural and livestock farmers, from any major price fluctuation before their crops was ready for market... So, a farmer in the middle of August who wants to sell his soybeans in November may want to sell short the November soybean contract and lock in a guaranteed price for his crop... exactly like we would a covered call today using the futures market like we use options today.. Of course, since then, the futures markets have developed into what it is today... GZ