Re: overnight gaps against your position ....
 

Personally, I seldom trade markets that don't trade 24 hours. i.e S&P futures,bonds and currencies unless I am net long options.

Re: Trends/charts
 

wildbill


Thanks for your statement ( but relatively little money is out there buying and selling the market itself.)it got me thinking.


Here's what I found.


From a 12/31/01 BIS report:

(According to preliminary data, the aggregate stock of contracts outstanding stood at nearly $100 trillion at end-June 2001, 38% higher than three years ago.


Meanwhile, equity-linked contracts expanded by 52%, to $2 trillion, while commodity contracts grew by 33%, to $674 billion. These market segments remain much smaller than those for interest rate and foreign exchange contracts.)


According to the Wilshire 5000, which tracks 6700 public companies, the Total Market Capitalization is $13.4 trillion.


That gives us 15% for equity-linked contracts. Interesting.

-----------------------------------

(Fundamentally people have changed.)


I agree.


They are much more comfortable going into debt in order to acquire 'things'. It would also appear they are very happy with no, or very little, equity in their homes. A falling stock market and falling real estate prices would be a recipe for disaster.


I'm not really a doom and gloomer (well, maybe a little...lol) but I do like to look over the fence and see what might be headed our way.


Time will tell.

notice, all other strategies safe from gaps [img]/images/wink.gif[/img] *NM*