20070928 1245. The movement in the spread between Oct and Sep FKLI futures, contributed to the creation of premium in Oct FKLI futures. What does this mean for the stock market going forward? Basically rollover are those in the right side (long) keeping long futures position and those wrong (short) postponing the losses. It is just switching months, and the supply and demand equation this month, at the very least indicates bullish tone for the stockmarket. However in trading, we need to assume the markets are a losing game, so any view cannot be stubbornly adhered to. When you assume it's a losing game from the outset, big losses can be prevented, minimising the damaging drawdowns.
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