May contango/backwardation of index futures forecast movements?

Discussion in 'Trading' started by crgarcia, Dec 14, 2007.

  1. May contango/backwardation of index futures forecast movements?
     
  2. ?................ The spread between the cash and futures can have some predictive value in the short-term. The spread between adjacent futures contracts has to be priced in such a way as to not give away "free money" and is more directly related to dividends and short-term interest rates.