The Emini S&P: The record OI posted on the CFTC numbers are interesting to say the least. The OI has been going up on fund longs for 10 weeks in spite of the large decline that occurred. The last record OI was on 06-12-2007 in the height of the Bull! I thought the Fund Long OI might drop back once the March went off the board, but the longs rolled to June. This not a market to buy breakout strength and buying puts on rallies is logical.It appears the professional traders; instead of beating the S&P, they are using the S&P index. Why pick 50 or so stocks when you can trade the index with margin leverage? The nice thing about he index, is that, all the bad stocks get knocked off the index and new ones take their place. This give the index a false record of stocks. Off the top of my head, as an example in the DOW,,, AIG was replaced with Kraft, well AIG was under $1, but the index doesn't factor the loss in. Anyway it appears the Big Boy's are cost averaging down the futures.
