Zoombie, if you look at the current price of the SPI front contract and compare it to the XJO price, the SPI is currently trading below the price of XJO. That is a SPI "discount". If the SPI is trading above the XJO price, then the SPI is at a "premium".
A few XJOers have different theories as to why this happens, but regardless of the reasoning it can be a reasonable market indicator for the mid term. It is possible to play the SPI premium/discount intraday, but it is a strategy for the very short term traders. If you have access to the appropriate data feeds, watch the SPI vs XJO just before and after XJO close.
hump day trading, page-5
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Last
7,700.7 |
Change
-82.300(1.06%) |
Mkt cap ! n/a | |||
| Open | High | Low |
| 7,783.0 | 7,783.0 | 7,654.2 |
| XJO (ASX) Chart |