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Rick:
I chart cash cuurencies and really wouldn't trade futures on cash currencies
without charting the cash. I find that sometimes the futures give the best
support/resistance and sometimes, the cash offers it. At the moment, high volume
in currencies comes in the cash markets, obviously, and in the CME during the
day session. The cash markets give you a different look because they are traded
and are liquid from Sunday afternoon until Friday afternoon, round the clock.
And of course, cash currencies have no 'cost of carry' or interest rate
differential built in to their price action. There are times when the interest
rate moves, in and of themselves, are well reflected in the futures prices. If
you like spread trades, these interest rate differentials are quite tradeable[In
the cash market, this is called trading forwards and swaps].
Another tip that you might find interesting [or not] is: If you trade bonds, try
charting the interest rate instead of the price. I find that the daily chart of
the yield of the 30 year cash market is a great framework as an addition to my
normal charting when trading bonds.
Hope that helps.
Best,
Tim Morge
007 wrote:
>
> Does anyone have any insight on the pros & cons of using CASH market price
> data and/or continuous contracts historical data for longer term market
> analysis?
> I'm mainly refering to the futures markets.
>
> I appreciate everyone's feed back on my previous post regarding continuous
> contracts alone.
>
> Thanks in advance, Rick
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