Re: DETERMINING "FAIR VALUE"

[TRaffertu <TRaffertu@xxxxxxx>]

In a message dated 98-03-01 13:19:57 EST, rjn7@xxxxxxxxxxx writes:

<< Fair Value changes during the day. Check the CNBC ticker: Look for PREM,
 the actual spread or premium, followed by FV for Fair Value. When PREM is
 more than FV there is a bias in the market to the upside, and when PREM is
 smaller than FV the bias would be to the downside. >>

         Hi Bob,

          Excelent comment.  Like you I also check fair value before the open
to give an  indication of early market direction.  However, as I understand
it, the relationship to fair value also indicates when computerized buy or
sell programs are likely to kick in.  (Today they moved the market down about
30 Dow points).

          This brings up two questions for you and other RT's:

           1)  Is there a symbol for Fair Value and Premium that can be
downloaded and possibly charted for further study?

           2)  At approximately what point above and below Fair Value do
buy/sell programs kick in?  I know these programs are propritary and include
variables such as the cost of money (interest) paid, so no two are exactly
alike but there are similarities which can be estimated (averaged?)

           Any thoughts would be appreciated.  Thanks.

                                            Good luck and good trading,
                                                       Ray Raffurty