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