Backwardation in ES and NQ

Discussion in 'Index Futures' started by Arthur Deco, Jul 17, 2009.

  1. Nattdog

    Nattdog

    Simplified or conceptual pricing of financial futures:

    Future price = spot + cost of financing -
    div yield.

    Logical to think the cost of financing is now lower than yield on underlying causing the lower forward prices.
     
    #11     Jul 17, 2009
  2. Thanks, guys. Years ago I watched the premium closely, seeking cosmic significance in it, and got out of the habit when I realized it hurt my head less to think of price as just a number. Was reading too much Hershey back then. Price is like your dick. The only thing that matters is if it's up or if it's down.
     
    #12     Jul 17, 2009
  3. Bull market good. Bear market bad. Very, very, very bad. :mad:
     
    #13     Jul 19, 2009
  4. I ungree. Deflation is great if you're sitting on cash.
     
    #14     Jul 19, 2009