Next few weeks start unwinding futures positions

Discussion in 'Index Futures' started by myminitrading, May 18, 2007.

  1. At some point this will cause a down draft, these contracts expire folks so be careful.
  2. index futures have run a long way very quickly, mark my words the almost certain exit is going to cause some serious downward pressure.
  3. rdm239


    hmmm i don't know if expiration will cause a downturn. Day traders will just switch over to trading the Sept contract in the next couple weeks. People with larger long positions probably have them because they want to be and stay long. That means they will be selling the June and buying Sept future. I am sure they are intelligent enough to do this without really hurting thier position (because they have similar issues every three months), plus if this causes a downturn in the June future and upmove in the Sept future, hedge funds and banks with step in and trade the arb opportunity until prices are corrected. IMO, I don't think its as simple as you are making it.
  4. So, where are your stops?
  5. So far this week the action speaks loud and clear, ramp up overnight sideways then down, nice way to unwind with out causing to much downward pressure.

    Lets see if we ramp up Wednesday night, after a couple of days traders start to figure things out. Thats when things change, I will be watching the overnight trade tonight everytime I get up to relieve myself I will check my workstation.

    The September contract will hit 14000 soon. Its trading near 13700.
  6. You still haven't explained how and why rolling futures would cause a downdraft. Do you even read your own threads, or did u stop doing that (for obvious reasons)?

  7. Yep