CL Futures chain is in backwardation. http://finance.yahoo.com/q/fc?s=CLM08.NYM does this indicate bearish sentiment on the future price of crude? Thanx for any help.
Yes we've got just a matter of a few dollars to go then it's back down to 100 and eventually 90.Big Euro (fall more likely than rise)also on the cards (imo) down to 1.5.
care to elaborate? how can back month futures with lower prices indicate a bullish signal? what is your reasoning?
http://www.elitetrader.com/vb/showthread.php?s=&postid=1809922&highlight=contango#post1809922 http://www.elitetrader.com/vb/showt...455&perpage=6&highlight=contango&pagenumber=3
In a sense it means that longterm traders are being paid to hold Oil because the price increases as it gets towards todays date
NOT EXACTLY, iF oil takes a 10.00 drop which it can at the drop of a hat, you will see so many back months running for the exits at the same time, they will be losing for holding! All this backwardation and contango bs is highly overrated in today`s market environment, far too much spec players in an already crowded trade for this at one time solid principle to provide much in the way of a trading clue as to the future of CL.