Futures traders are rolling forward from the December contract to the March contract for active trade today. Even though the December contract does not finish trading until next week, trades migrate the Thursday before.
This causes a bit of confusion the first few times you experience it. Then it just becomes another piece of work you have to do as a futures trader.
Depending on your charting platform’s abilities this can be a relatively smooth adjustment. Unfortunately, my charting platform lacks certain capabilities, like adjusting price levels.
Thus, I have to manually adjust about 300 historical price levels -4.75 points. The March contract is currently trading 4.75 points below the December contract due to backwardation.
The only real frustration I have from here until the end of next week is how volume is split between the two contracts. Less volume where I am equals less liquidity and less visible moves. In fact, its likely I won’t even trade futures until this who rollover resolves.
In summary, bear with me and I will have some charts up later on today.
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Most important looking for a resting day after two big days. if sellers do not show up to close the gap prices could easily take back much of yesterday’s selling. Caution shorting a break higher, especially if sellers cannot close the overnight gap.
also keep in mind business inventory #’s at 10am and at 10:30 am Nat Gas storage numbers if you are trading energy
Raul – the undercurrent has been swirling with good vibes, ever since your surf post. I’m keeping it going. “Everybody Up!” http://youtu.be/kwNhCAjz-Vo
surf guitar vibes are always good vibes
I saw The Astronauts in a shopping center parking lot in the 60’s. In Boulder. Surf On.
Large up. I remember you talking about this in Vegas.. Great notes for newbies getting into the flow of futures trade. Definitely jotting this in my notebook.
Can you refresh me on the convo? You talking about our roll forward talk?