Below you will see the published updates from the Market Dimensions Advisory showcasing the positions that were executed following the MDA SnapShot levels that were released from today’s session. This content is from the “Trading Updates/Recaps” that go out to MDA Subscribers. If you would like to follow these trading alerts in real-time, receive them in your inbox and have the ability to speak with me, you will need to subscribe to the newsletter and become a client of our firm. To get these updates sent directly to your inbox, please SUBSCRIBE HERE. To see ALL MDA published updates (trading recaps, daily levels, and educational trading material), visit the MDA BLOG PAGE: HERE.
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Below the first update, you will see the original charts showing buy/sell zones
Published 6/28/16 – 12:22 pm – Position Update and Seasonal Algo Chart
We got further follow through and a new recent low on our Short WTI Dec16/Dec17 crude spread. yesterday we tested and closed below the 200 day moving average @ -2.14. The oil Market has rallied back up to $47.81 on the front month crude but the Dec16/Dec17 relationship is still weakening, with it last traded @ -2.39. As mentioned previously we will be looking to see if we can challenge the -3.00 level that held back in mid-March early April.
Sold spread @ -1.49
Last @ -2.39 +90 cents or $900 per contract before fees
Here is an updated SeasonalAlgo chart showing the historical relationship for this spread as well as the current prices. I use the SeasonAlgo website as a tool to analyze my spreads for historical and seasonal price movements.
Click Image for larger new window:
Previous Updates Below:
Published 6/27/16 – 2:36 pm – Position Management – Update Stop
I just wanted to provide a quick update on the Short WTI crude spread we are in. As mentioned Friday, We took a partial profit at -2.00 which allowed us to take some profits off the table (51 cents or $510 before fees per contract) and we left the original risk on the table. During the overnight and through today’s session we got more follow through on this trade. The low on the day was -2.35, which was/is 86 cents or $860 per contract before fees.
With this move, I am looking to move the stop on the remaining positions to our entry price. Depending on your position size on this trade, I wouldn’t hesitate taking more contracts off, and then leaving the last remaining bit for us to challenge the -3.00 profit target and potentially go lower. Overall, this spread trade as been in our favor day one. We had the technical setup in line with my fundamental ideas and then the Brexit sell off across the board added strong wind in our sails. I look forward to providing more spread trades going forward.
Below is a chart of the updated move 6/27/16
Published 6/24/16 – 2:50 pm – Position Management – Partial Exit – Free trade
I wanted to provide a quick update on the Short Dec16/Dec17 WTI Crude Spread we are in. We have seen a lot of downside in the crude market the last couple days, especially with the Brexit vote last night and this morning. This has caused the Short Spread position we are in to continue to trade in our favor. For those who are not familiar with the nature of spreads, what we saw last night is a great lesson for why many like trading spreads. When we had oil down -3.00+ down in the overnight the spread difference between contracts was really only between 20-30 cents. so if we were on the wrong side of this trade it still is a reasonable position to manage in the what is the most volatile session in years.
Moving along, here is the update. We sold @ -1.49 the market tested -2.00 in the overnight and just now tested that number again and made a low @ -2.02. I am using this move to take a partial profit on half of your positions. What this does is essentially turns this trade into a free trade. The initial risk on this trade was/is 51 cents, the -2.00 profit level is taking in 51 cents or $510 per contract before fees. Since spreads require fewer margins to hold and often trading ranges take longer to develop and volatility can be lower than straight futures contracts, that is why many people will trade multiple spread contracts at the time. If you are only holding 1 contract, I would the position and consider a move of your stop to entry price.
Short @ -1.49
Partial Exit @ -2.00 (+51 cents or $510 before fees).
Risk: Keep Remaining Risk @ -0.98 cents. Let’s see if we can ride this downward momentum toward the -3.00 initial target. If we are wrong we can always scratch trade and keep partial profit or keep initial risk and have this be a free trade risk capital wise.
Click Image for larger new window:
Chart Showing: Updated moved/Partial Exit price: 6/24/16
MDA SnapShot Chart – WTI Crude Dec16 vs Dec17 Daily Chart – Original Chart Showing Setup 6/21/16
WTI Crude Oil Spread recommendation. See it here on my blog: http://www.danielstrading.com/market-analysis/2016/06/21/mda-snapshot-spread-trade-wti-crude-dec16-vs-dec17
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