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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (6358)	2/14/1999 9:31:00 PM
From: yard_man	Respond to of 99985

Thanks for your perspective, Haim. I guess the harder question to answer is what will happen in the near term: will component prices begin sliding again and slide fast enough to let the boxmakers retain some of their dwindling margins or will the price of PCs drop so fast that margins of the boxes get toasted before the components drop? I kind of think the latter ... OT -- I've been discussing with someone else the term backwardation -- when the nearer term futures contracts trade at a premium to contracts further out. For a commodity which has this happen after coming off a low I had read somewhere that this was technically a very bullish indication. You do these technical scans -- so I thought you might know a little bit about it ... this happened with the silver contracts recently, BTW -- do you know the reasoning behind this assertion?