Let's take this disscussion in a little different direction. Let's talk bean spreads. Have been trading the X10/x11 with some sucess, hasn't been 18 years without a losing trade but have made a little money. Since the usda report and their cut to ending stocks, n11/x11 has traded to a high of 68 today. What I have been doing is buying x10/x11 around 28-30 and seling the x10/n11 against it when it rallies leaving me with the n11/x11 at something closer to 55 (could also just sell X10/x11 when it rallies. Often a 10 daily range in the spread. What do you guys think. Bone, please don't tell me your model told you to buy this spread last Friday at 14 because I just won't believe you.
Regards,local