Bone's Personal Tuesday 3/10 Gameplan

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bone

Weighted Equity Pairs:

Bearish IBM/SPY
Bearish HPQ/SPY
Monitoring for Bearish Tones: AMZN/EBAY
Bullish MCD/SPY
Bullish CPB/SPY
Bullish POT/MOS

Weighted Yield Curve:

Still Bullish Two's to Fives around yesterday's opening range

Tens to Thirties are rich but still a buy around yesterday's opening range - the TuF in my opinion has more upside than the NoB

Weighted Crude May Butterfly: a modest sell around yesterday's close

Weighted Nat Gas April Butterfly: a buy around yesterday's closing levels

Cracks: Both the Heating Oil and the RBOB Cracks have more downside in them - April and May; May looks like a better sale

Note: yesterday's trades were superb; only non-performer was EXC vs SPY (chopped around - scratch)
 
Stock Pairs:

CVX/COP +$1.18
EXC/SPY +$0.77
IBM/SPY +$1.37
HPQ/SPY +$0.67
MCD/SPY ($2.27)
CPB/SPY ($1.64)
POT/MOS ($1.46)

Subtotal Pairs: ($1.38)

Yield Curve: Two's to Fives Weighted: +$468

Nymex Crude May Butterfly: +$100

Nymex Nat Gas April Butterfly: +$40
 
Weighted? That's fine, but the trades are meaningless to the reader w/o the ratio. Also, regarding your weighted fly trades -- should we assume a short May fly is long May*2, short Apr&Jun? 1/2/1 would be classical, but you stated a ratio? Which is it? Thanks.
 
Atticus:

You bring up an excellent point, which I will have to make sure I adequately clarify in my upcoming website.

A big obstacle is the traditional way spreads have historically been quoted in energy and interest rates - especially on the floor and with voice brokers. Both are bass-ackwards from each other to accomplish essentially the same position profile.

Thanks,

Bone
 
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