Yes, "One Way or Another" we will get our due profits......... (this chick was always cool, as in HOT!! LOL) http://www.youtube.com/watch?v=KXewIR7Y7cc
If we're going to look at Blondie lip synch I kinda like this one. http://www.youtube.com/watch?v=gbnbMMCfyoc PS love how the keyboard player finishes the solo by counting the last note with his fingers !
Does anyone know what happened on 11/27 to cause the March through the June contract to be all within about 20 cents of each other? I was just looking at calendar spreads and had all 4 symbols up at once on a chart to compare how they moved. I am just trying to find some insight on if this occasionally happens or if it was just due to some type of news.
November 27 was the day before Thanksgiving and an inventory day. Low volume plus a news event could cause an atypical opportunity. The trading day had a relative narrow trading range.
Thank you, roreilly. Looking back at the chart it seemed like a perfect opportunity to go long the nearer month and short the later months counting on the spread to widen. Hindsight is 20/20 of course. Also pertaining to this trade, is there much risk of oil going into contango instead of backwardation? I was trying to think of the risks associated with the trade mentioned above and that was the first thing to come to mind. Excuse the beginner questions on this, I am just trying to learn more on these spreads and the curve. Thanks Edit: I just looked into this a little more and see it has been like this for a few years now due to a few different factors. I would guess the risk is relatively low of this market reversing and going into contango due to current conditions, but seeing the convergence in those contract prices would make me a little skeptical in real time I'm sure...Interesting!
Oil was in Contango for four years before April 2013. No free lunches here, sorry. Check out http://www.riskreversal.com/2013/08/05/chart-of-the-day-crude-oil-contango-to-backwardation-uso/ for more perspective. EIA explains steep backwardation of WTI futures curve HOUSTON, Sept. 24 09/24/2013 By Conglin Xu OGJ Senior Editor-Economics Over the past 6 months, the front month price of West Texas Intermediate oil futures has been pushed up relative to later months, leading to a steepened backwardation of the WTI futures curve. Backwardation is the market condition where prices of contracts with later delivery dates are trading below prices for near-term contracts. According to the US Energy Information Administration, the current steep backwardation can be attributed to several factors: • The price of the front-month contract has been driven up by recent geopolitical events, supply disruptions, and high seasonal refinery demand. • Market participants expect some bottlenecks of pipeline infrastructure to transport oil out of Cushing, Okla., to persist, which contributes to lower WTI futures prices and drawing from inventories that reached record highs last year. • According to EIA’s latest Short-Term Energy Outlook, total US crude oil production will average 8.4 million b/d in 2014 compared with 6.5 million b/d in 2012. Market expectations are that US oil production will increase in future years, which contribute to downward pressure on the WTI price. “The fact that the market is backwardated reflects the market’s anticipation that most of the recent international geopolitical factors will be temporary. The market expects the longer term fundamental production and transportation issues described above to remain, which contributes to lower WTI prices,” EIA said.