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Compare historical price curves with backwardation and contango tendencies - a narrowing price spread in the front calendar reflects an improvement in near-term supply availability.

There are skads of HF prop shops and private equity funds out there that will pick up any ECN quoting and messaging dropped by the IBs - wishful but unrealistic thinking that HF strategies will fade away with legislation.

Update on the Chicago Business Model: empty arcades, no more draw salaries, nobody left who still fades one sigma moves, continue to stack the order book for implied spread markets in the interest rate markets right at the market open - offer 1,000 and get 35 on pro-rata order matching.

Clarification, I have clientele clearing NewEdge - primarily for direct ECN access to LME.

NewEdge clears in the United States (Soc Gen and CA conglomerate/transformation). I clientele clearing them, primarily for LME. $3M minimum account size.

George Soros makes it hard to kill certain stereotypes.

Well, we are in 43% of the armed conflict. Besides, makes for great cable programming. The cornerstone for American military strategy since 1942 has been firepower. Making big boob-boom ain't cheap.

IMO the days of an independent or prop trader wedding themselves to a particular instrument and technical set-up is probably over - my preference is to monitor many spread combinations and cherry-pick the best risk/reward skews using a custom scanner. Even the best trade set-ups for specific...

Agreed for strategies involving directional flat price. Strongly disagree for relative value spread trading strategies - especially in the energy and metals spaces.

I did it. In 1985 I was an Engineer and in 1993 I started trading part-time and was a full-time trader two years later. I have several clients who who lost money trading themselves or with prop firms without an organized plan and viable strategy and failed, got other jobs or started...

usually commercials rolling their short strip positions forward - they scale, and when they're done the spread will sell off again

I would like to see the July-Augie come off some more before I took a short. Call me conservative to the max in terms of risk/reward skew - I am perfectly willing to trade some range in exchange for more confirmation. Remember that we saw -50 in April as the first downleg correction max level.

Right. Commercials short strips (producers) are scale traders, and you will see them buying some calendars to roll their short positions forward (deeper) as the market sells off. They don't necessarily wait for the third week of the month to roll. Not a rule, but a tendency.

Sun Too: I have lots of long chats with my clients on a regular basis. Individual, personal chats with graphical props.

Dean and Rose: As you guys know, the energy spreads have their own unique set of idiosyncracies 'and local knowledge' kind of nuances to them. I mean, the floor locals and OTC brokers even quote them different than the interest rate and ag brokers do. I am going to throw out a 'general...

Backwardation and Contango refer to the general shape of the forward crude oil curve - please google or visit the Nymex site. The crude oil spread curve and the natural gas spread curves are their own little galaxies. There are entire trading groups and funds who specialize in the craft. Just...

I'd like to welcome five new clients who signed up for the upcoming training rotation. All are current ET Members, and they took the time to check my background references, ask lots of probing questions and independently contact some existing clients. As a side note, I added several weeks to...

Doesn't really matter - the pussies wouldn't let us Yanks have access to EuroMTS anyhow. Besides, easier just to pound the snot out of the Bund anyway.

General Tendency: as the flat price market comes off, the producing commercials who are short strips will buy the calendar spread to roll their positions. Past few years, the higher crude prices also tends to favor some contango - we have come off almost 20%, so careful where you short because...

Don, I have a couple of clients using Bright for their equities. Any chance you could arrange a give-up agreement for them to execute the occasional futures trade? Think of it as a limited omnibus account; they didn't seem thrilled about IB.