To: Sonki who wrote (15533 ) 9/11/1998 10:52:00 PM From: Electric Read Replies (2) | Respond to of 42787
Sonki, When I judge DELL's action I judge it against the Naz 100, not the entire composite, The 100 is the big caps and is more accurate weeding out alot of smaller names. As for PREM and FV, they are indicators I use strongly in intra-day market watching.. FV is what the Futures on the S&P are trading at (Today started a new futures contract) and PREM is what the cash is trading at, or the current SPX in relation to the Futures (FV) What all this means is that the S&P is a basket of stocks that have premium as an option, and how the futures and the SPX trade can determine the market movement. H.Camp has on their site where buy and sell programs are planned to hit in relation to the FV and PREM. To me watching that and TICK can tell volumes about how the DOW and the S&P and even the NAZ are going to trade. Next time you watch the ticker and you see PREM and FV move across, watch them and how when PREM rises above FV how the market will almost like a shadow follow instantly afterwords. For the best effect load up quote.com chart and double click on PREM, then you can watch the DOW and the PREM interact since they are interconnected. The extremes are what is most useful to trading, when you are watching and observe a big jump either way, it might signal time to exit or enter a position. And at the end of the day PREM settles with FV and it gives a microcosm of a possible start for the next day. Last night PREM was 10 points under FV, and the market started downward, today PREM is about 4 points above FV, so unless the futures tank it might mean that the markets will open higher on Monday. Globex can change that though. I hope I didnt confuse you.. It isnt the cure all, but I like to watch it...