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RE: S&P 500 Cash Index .......



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Tom,

I agree with Ron's comments. Please specify more detail so that this can
become a meaningful discussion. Please don't worry about giving your secrets
away. I think we would all have a chance for gaining some insight that may
help our trading and you would be hard-pressed to find any downside to
sharing your ideas. There are just too many differences between individual
traders on this list and anywhere else for it to adversely affect your own
trading. If anything, it could enhance it if some other people are entering
at the same time you are.

Neil


|  -----Original Message-----
|  From: Ron Augustine [mailto:RonAug@xxxxxxxx]
|  Sent: Monday, June 15, 1998 9:53 PM
|  To: TomKochik@xxxxxxx; omega-list@xxxxxxxxxx
|  Subject: Re: S&P 500 Cash Index .......
|
|
|
|  Depends what you mean by "closely related".  Every three months, when the
|  new front-month contract becomes the major focus, the Premium
|  jumps by over
|  12 points.  As the Quarter continues, the Futures Premium
|  diminishes until
|  it meets the Cash Index upon expiration of the contract-- same
|  as an Option
|  Premium decays over time.
|
|  There are many instances throughout a trading day where the
|  premium expands
|  and contracts in relation to the Cash Index.  There are times
|  when it dips
|  below the cash price.  If you've been "getting extremely good
|  results" on a
|  regular basis, you've found the Holy Grail that has eluded traders for
|  decades-- but don't hold your breath-- I'm sure there are many here that
|  would take issue with whatever you claim to have discovered.
|
|  If you want to start a discussion on how well your techniques
|  work and what
|  pitfalls you might encounter, you would need to specify exactly what time
|  frames you're monitoring (i.e. 5-minute, 15-minute, hourly,
|  daily, etc.) and
|  what analysis techniques or indicators you're using to Enter and
|  Exit your
|  trading positions.
|  ___________________________________
|  At 11:10 PM 6/15/98 EDT, you wrote:
|  >Hello All,
|  >
|  >I am just trying to test and evaluate a method to take a position in S&P
|  >Futures on a Day Trading Basis ONLY based on comparing the
|  chart of the S&P
|  >Future and its cash equivalent. I ve noticed besides they are
|  very closely
|  >related following the rule to either
|
|  >buy or sell short when the "probable major" reverse trend has
|  started, then I
|  >am just waiting for the S&P Index to follow that turn of the
|  Future Index and
|  >then I would trigger the order. By doing this for the last
|  couple of weeks I
|  >ve benn getting extremely good results !!
|  >
|  >Please any comments ?? Ideas ??
|  >
|  >Thank You very much
|  >
|  >Thomas...
|  >
|  >
|  >
|
|