Rollover

by Larry Levin

Thanks to the Federal Reserve, ECB, and Congressional meddling, the stock market rarely has a thing to worry about.  You know, that whole “free market” thing was soooooooo 20th Century.  Because of this, volatility is at an extremely low level.  Sadly, it will get worse.

Wednesday (today) was the day before rollover begins, where one futures contract ends and another begins.  Thursday is the day when March’11 becomes “top step” and Dec’10 runs out.  The December contract will not expire until the end of next week.

Because the top step, or front month, will now be the March contract yet December will trade through next week, volume will be split between the two contracts.  Unless there is extremely bearish news that is somehow not ignored, the split volume should cause the market to be extremely slow over the next few days.

Starting Thursday December 9th, we will be trading the March contract.  Make sure you change your charts and trading DOMs now so there is no confusion in the morning. 

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Trade Date: 12/8/10
E-Mini S&P Trades*
(before fees and commissions):

   1. OTF sell @ 10:41am at 1223.50 = -.50 & -1.25 (2 lot)
   2. Algorithm positions (1)
   3. "Reading the Tape" positions (8) …combined Secret’s, Algo, & "Reading the Tape" total... -2.50

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