I wanted to give an update on the basket of spreads we are holding from our Market Action Alerts. Overall we are looking good on the positions. Below you will see updated charts showing the spread entry, risk and price action. If you have any questions on these trades, please feel free to reach out to me. Stay tuned for more spread opportunities in the future.
Live Cattle Spread: Short Feb – Long June @ +9.15 (11-11-15)
This spread is continuing to trend in our favor. We had a risk off opportunity for those holding multiple contracts that were filled @-6.60. We are still trending toward our target prices below -5.00. Today we had a low @ -6.10 ($1220 per spread before fees). Last @ 6.375
WTI vs Brent Crude Spread: Long Jan WTI – Short Jan Brent Crude @ -2.70 (11-20-15)
We have seen crude prices continue the downward trend the last few weeks, but we have been trading sideways in the WTI vs Brent Trade. After we were filled on this trade we had a bit of downward pressure but since then we have traded between -3.00 and -2.50. So slightly against us to slightly positive. The January contracts will be rolling soon 12/16/15 for Brent, so we need to start thinking of rolling or exiting the trade. Depending on your entry you can scratch the trade or look for the high end range around -2.50 Last traded @ -2.98 (-$280 per spread before fees).
Feeder Cattle Spread: Short March – Long May @ -1.40 (12-2-15)
We have been in this trade for a week now. The trade went against for about a session or 2 once we got in but not by much. Since then we have started trending back toward the lows we wanted. This spread has last traded @ -2.45 (+$525 per spread before fees).
Heating Oil Spread: Short Jan – Long June @ -0.0880 (12-3-15)
This seasonal spread had some strong momentum the day I was looking to get involved, so we wanted to enter this trade on a retracement rather than just a seasonal window. The price came back and triggered our entry and has continued to trend back in favor. We are targeting the -.1200 price level that I am wanting hit. Depending on your entry price how many you are holding, I would suggest looking to start working or thinking of taking profits on this trade. Last @ -.1115 (+$987 per spread before fees)
Beans vs Wheat Spread: Long March Beans – Short March Wheat @ 4.07 (12-7-15)
Our more recent spread is playing is arbing the price difference between March Beans and March Wheat. This contract went on a strong run breaking through $4 and hitting almost $4.30. The goal was to enter on a short retracement with us looking to trend to the $5.00 historical prices. Since our entry it appears we have seen the spread trade back below $4 and last traded @ 3.90 so we are down roughly 17 cents ($850 per spread before fees) With price action the last couple days preparing for today’s WASDE and it not revealing much (non-event) I look for this spread to track back higher.
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