When is /VX Futures goes into backwardation

[deonyang]

1) Is it when the market fear is high, vix rises?

2) Does that happen to other futures as well? like /CL underlying is constantly making
new high..maybe there's possibilities that Crude Oil Futures goes in backwardation and when the /CL underlying drop, backwardation might revert to contango or flat?

3) Does the underlying has any correlation to the future as well? maybe when underlying rise, future has potential goes in backwardation vice versa

 

[FCXoptions]

1. yes
2. Commodity curves are more based on supply/demand, storage,seasonality, etc I believe
2. The underlying of what? But typically the underlying of anything should have a correlation to the futures. If oil spot skyrockets, I would assume oil would move up. Again it all comes down to supply/demand/storage/etc.. maybe if there is a temporary surplus/shortage of something the underlying/spot might move and the futures not really, but typically I would say yes

 

[deonyang]

1. yes
2. Commodity curves are more based on supply/demand, storage,seasonality, etc I believe
2. The underlying of what? But typically the underlying of anything should have a correlation to the futures. If oil spot skyrockets, I would assume oil would move up. Again it all comes down to supply/demand/storage/etc.. maybe if there is a temporary surplus/shortage of something the underlying/spot might move and the futures not really, but typically I would say yes

Im sorry, i didnt said it clear enough you.
1. Is it when the market fear is high, when vix rises, will /VX futures goes in backwardation?
2. The underlying of any commodity futures

so its still comes down to many factors such as demand, shorttage, surplus etc.
thanks you

 

[SouthbeachCTA]

Or when certain oil workers on strike in Kuwait decide to go back to work, AND Iran decides to continue pumping no matter what..... yeah you will see futures prices and volatility values revert "back to the norm."

 

[deonyang]

Or when certain oil workers on strike in Kuwait decide to go back to work, AND Iran decides to continue pumping no matter what..... yeah you will see futures prices and volatility values revert "back to the norm."

thanks for your feedback.
may i know where do you guys looking for this kind of information? CNBC?

 

[SouthbeachCTA]

thanks for your feedback.
may i know where do you guys looking for this kind of information? CNBC?

I use a mix of news services, Associated Press, Reuters, Finwiz News, Dow Jones News(u pay for it unless your broker offers it for free), Globaloilwatch.com(pay for this one also), etc. I personally use a newsreader, and use RSS feeds from those sites to keep me updated of important news regarding the markets I trade. Try to find a newsreader that updates(or lets you to set the "update news feeds" every 10-30 seconds. Speed is very important as the faster you get to read the news when it comes out, the faster you can react to it and hit the sell or buy button.