"Roll over, Rover."

by Larry Levin


Today was roll over day, so I hope you were trading the correct contract. Roll over involves exchanging the expiring position for a position expiring the following settlement date. In this case, December '07 was the expiring contract and March '08 becomes the new "front month."

A few days ago I touched on inflation and how we would be getting new insights into it, or the lack thereof later in the week. Some of that data arrived today. The Labor Department reported today that wholesale prices rose 3.2% in November, their largest monthly gain since August 1973! The report read that wholesale energy prices rose 14.1% last month, which beat the prior record growth of 13.4% in January 1990. Gasoline price growth also hit a record -- reaching 34.8% -- up from the prior record of 28.8% in April 1999. Producer prices are up 7.2% in the past year -- the largest growth since 7.5% in October 1981. Core prices are up 2.0% in the past year.

Thank goodness none of this will matter. After all, the government doesn't bother to count increasing energy prices (said with tongue planted firmly in check). In reaction to the PPI data John Ryding, chief U.S. economist for Bear Stearns said, "Ugh, this is a horrible inflation report. Our reading is that both import prices and producer prices point to significant inflation problems ahead."

Will the CPI data confirm the PPI? Only time will tell.

Real Time Trading Signals*for

Trade Date: 12/13/07

E-Mini S&P Trades*
(before fees and commissions):


10:06 FT Sell 3.25 = -1.75 all

10:30 OTF Sell 86.00 = +.75, -1.25

10:47 OTF Sell 86.00 = -.75 all

1:25 FT Buy 87.50 = +.75, +2.50, +5.00

2:09 VA Buy 89.50 = +.75, -1.50

2:17 ID VA Sell 91.25 = -1.50 all

E-Mini Russell Trades*
(before fees and commissions):

1) Sell @ 8:34am at 770.3 = -.3 & -.3

2) Sell @ 8:59am at 767.0 = +.5 & b/e

3) Sell @ 9:43am at 767.7 = +1.1 (1 lot)

4) Sell @ 10:02am at 766.1 = +.5 & +1.5

5) Sell @ 11:49am at 764.6 = b/e & +.5

6) Sell @ 12:44pm at 765.5 = b/e (1 lot)

7) Buy @ 1:25pm at 770.6 = -.7 (1 lot)

8) Buy @ 2:09pm at 770.3 = -1.0 & -1.0

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