Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Kona who wrote (19588)	8/28/1998 9:44:00 AM
From: IQBAL LATIF	Respond to of 50167

Cash trade at a discount to futures- number one we all know that It happens that sometime future are trading at a lower level --this is in anticipation that cash will drift lower too that is actual selling will take place, what happens some of the time in a fast market is that pits take the futures down below cash this is what is neg premium- now if actual selling does not materialise we see an arbitrage possibility, one can buy the futures at discount and sell the shares locking in the gain, but it will never stay that way once the arbitrage players come in the discount is all gone-- last night at the close SP closed ast 1042 and futures settled at 1036 in other words a huge discount to cash- it was post closed trading in futures which continues for 15 minutes on globex if you see todays we are seeing now +10 but from 1036 close now anyone who has shorted has to get out with a nice little blow. When CAC wasa down today and FTSE was heavily down I went long on ALA stronlgy against my broker advice but I could smell that these guys are going to whip it higher as the futures on globex moved higher so did the markets in Europe rallied paring some huge losses- they were as much down as 200 points and DAX 5%- now if you start reading in Globex too much you are a goner-- these guys manipulate this whole thing with best of their ability- in my opinion I would think they will like to stop out all the shorts and take this to 1055 and we will see if my posts works where I have intended them big buying may break this 1060 resistance and we may lok back at this episode as a false break but tighten your seat belts last night when I was writing my levels for today the globex was showing limit down.. Any way please ask me if you have any further questions I sometime miss some posts for which I aplogise sincerely to everyone.