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.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (27399)	9/11/1998 9:22:00 AM
From: ViperChick Secret Agent 006.9	Read Replies (2) \| Respond to of 94695

"Maybe my whole idea is wrong about Globex... I thought was the off-hours trading values going on, however thin. So when S&P500 is up 300 (that is 3.00, right?) then by multiplying by 8, the ratio between that index and DOW (approximately), you get DOW??? What am I missing here??? " First of all...I use the multiplier 8 for convienance sake...but the exact number changes every day and I have no idea where it should be right now... Second...the problem you are having is so common on SI when it comes to understanding globex... the futures trade in "regular" hours....until 4:15 (but you will see trades later as it settles...until 4:25 sometimes) AFTER the regular market closes yesterday they sold off big time after the "market" closed SO the market doesnt have that 10 point sell off factored in... so for a simple example.... if the futures sell off 10 for a discount to cash by 4:15 ...btw, if you look at the daily settlement prices...the last number is often different than the settlement number cme.com then globex has to be up 10 JUST TO BE EVEN with the cash close this doesnt count the concept of fair value being considered in this which is a DIFFERENT issue...but one that people often confuse with the discount to cash...I never mess with fair value when I am watching globex.. so this morning I see the futures UP on globex BUT that is STILL a negative because they are still at a discount to the cash close index options trade after the regular market closes...thus you can try to play this futures movement...as they will move the price of the option based on what the futures are doing