[TinGull]

When the auctioneer is trying to sell Elvis's last peanut butter and banana sandwich and starts the bidding at 12270 dollars, there's a little interest, yea? Right..just a little. It gets bid up to about 12300 dollars, and then no one is interested in it at that point. Why? Too expensive for their taste buds. Then, when people aren't interested at that point...the other bidders think to themselves, "eh...that really just doesn't look tasty anymore. No one else wants it, why should I?".

So the bidding goes down, and down, and down to find some buyers. Any takers at 12266? That was valuable at yesterdays auction for some Elvis toast spread with honey! A few people want to get in on it, but then...interest really dries up. No volume at those higher prices. Overvalued at the moment. So, the auctioneer sends his price lower to see if anyone is gonna be a taker. Eventually it gets so dirt cheap, that someone says "FINE! I'll take it just to not hear your voice anymore!!".

This is what happened on the YM today. Notice in the blue circle that volume dried up. There was about half the volume in that 5min bar with the red dot than there was in the prior bar. Buyers are no long interested in this contract. So...price auctions lower.

Price is simply an advertisement for the contract. A lot of people will get too caught up in the price of something...priced closed at the lows, closed at the highs...That doesn't matter! What was the perceived value of that contract for the day? For the hour? While price may be king, value is the Kings constituents who can overthrow him so they choose.