Futures at a premium
The front-month future paying more than half a percent over cash, in an uptrend — leverage leaning long.
The basis is the futures market's opinion of the cash price. A persistent premium means leveraged traders are paying a carry cost to be long, which they only do willingly when they expect the move to continue. The trend filter matters: a fat premium in a falling stock is stale hope, while the same premium above a rising 50-day average is conviction with the trend at its back.
More derivatives:Long buildupShort buildupShort covering rallyLong unwindingOpen interest at a 3-month high
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