I don't know the reasons, but here is the crack, as liquidations are subsiding we are starting to see turns in a lot of instruments - stock indexes, oil, gold, silver is about to make a major turnaround beating Gold by narrowing ratio from current ~0.013 to 0.018 (basically silver @ $14.7) in the very near future and perhaps even more. Gold & Silver have hit a 50% fibs recently, Oil bouncing of a major support zone as well as stock indexes. All of this points to "Obama's plans" being given the benefit of the doubt, what the future holds? Nobody knows. I think it's prudent to look at what's happening at the moment as a retracement & not a reversal, too early for that ImPO.
Bullish on OIL @ $51.30
- Thread starter JSSPMK
- Start date
I don't know the reasons, but here is the crack, as liquidations are subsiding we are starting to see turns in a lot of instruments - stock indexes, oil, gold, silver is about to make a major turnaround beating Gold by narrowing ratio from current ~0.013 to 0.018 (basically silver @ $14.7) in the very near future and perhaps even more. Gold & Silver have hit a 50% fibs recently, Oil bouncing of a major support zone as well as stock indexes. All of this points to "Obama's plans" being given the benefit of the doubt, what the future holds? Nobody knows. I think it's prudent to look at what's happening at the moment as a retracement & not a reversal, too early for that ImPO.
hey why dont you join us here
http://www.elitetrader.com/vb/showthread.php?s=&threadid=134046
quite alot of us oil traders are there and would benefit from your calls
I just trade spreads, and I don't see any fundamental reasons to bullish this product..
Selling march/buying april gives us a better chance to make money in this market, right now this spread is trading at -2,75 (up over 0,95 cents) If we break the -3.00 level again, you can bet that the March futures will drop to the $35 levels.
Selling march/buying april gives us a better chance to make money in this market, right now this spread is trading at -2,75 (up over 0,95 cents) If we break the -3.00 level again, you can bet that the March futures will drop to the $35 levels.
Of course pal.
http://www.amazon.com/Futures-Sprea...=sr_1_4?ie=UTF8&s=books&qid=1232648443&sr=1-4
http://www.amazon.com/s/ref=nb_ss_b...books&field-keywords=Spread+Trading&x=13&y=24
this one is a complex book, but its very good.
http://www.amazon.com/Energy-Power-...r_1_10?ie=UTF8&s=books&qid=1232648647&sr=1-10
review:
In chapter 5 the author presents techniques for energy modeling that go beyond the used of the convenience yield by using forward pricing techniques. The goal is to describe the dynamics of future contract prices that takes into account the correlations with other futures, and not on the price evolution of a single contract. Thus it is the `forward curve' that is relevant for obtaining a useable model for derivative cash flow.
http://www.amazon.com/Futures-Sprea...=sr_1_4?ie=UTF8&s=books&qid=1232648443&sr=1-4
http://www.amazon.com/s/ref=nb_ss_b...books&field-keywords=Spread+Trading&x=13&y=24
this one is a complex book, but its very good.
http://www.amazon.com/Energy-Power-...r_1_10?ie=UTF8&s=books&qid=1232648647&sr=1-10
review:
In chapter 5 the author presents techniques for energy modeling that go beyond the used of the convenience yield by using forward pricing techniques. The goal is to describe the dynamics of future contract prices that takes into account the correlations with other futures, and not on the price evolution of a single contract. Thus it is the `forward curve' that is relevant for obtaining a useable model for derivative cash flow.
i used to trade about 70 percent spreads, ive moved to nearly 100 in this climate and it has treated me well. It's a skill that deserves some looking into.