This spread is called the Widow Maker and right now, you can see why this spread has its nickname. The extreme becomes more and more extreme. However, we think now is a good time to sell this spread.
If you sell this spread then you are trading 2 things
The goal is that the spread is tightening again.
We think it is worth to have an eye on this crack spread between gasoline and heating oil. The reason is simple: this spread is close to its lower end of the range and therefore close to its extreme. We will buy this spread when the spread reached -0.40. In this case, we buy RB and sell HO.
Anyone familiar with the Commitment of Traders Report knows that the commercials have reached an extreme range that leaves much room for rising prices. Added to this is that the chart image with the recently formed double bottom looks bullish.
This is what a trade might look like:
- Entry immediately
- Stop Loss below the last local low
- Take profit with multiple...
This calendar spread is currently close to an extreme again. If you want to short this spread to exploit the mean reversion effect be careful because this specific spread (September/October) is only tradable until mid of August!
A first take profit could be the level of $1 if you are conservative. If you are a bit more aggressive then you can close the trade at a...
Keep an eye on this extraordinary extreme in the soy crush spread. This spread includes 3 futures: soybeans, soybean oil and soybean meal and to be exactly now it is time to sell this spread!
What do you need to do to sell this spread?
To sell this spread you have to make 3 transactions:
BUY 1 soybeans contract
SELL 1 soybean oil contract
SELL 1 soybean meal...
This very interesting soybean crush spread is very close to its extremes and we think it is a good idea to short this spread. To do this, you need to buy 1 contract in soybean meal, 1 contract in soybean oil and buy 1 contract of soybeans. Our target is the level of 130 and we are willing to sell one more spread at the level of 180.
Micron Technology is a trending value stock (P/E under 7 with huge positive cash flow in an industry that is more relevant than ever thanks to the memory needs of our cloud AI and IoT world). On the next break upwards it can be a great buy after the recent downtrend (selling pressure from large shareholder Nanya that is selling for its own reasons that have little...
Micron Technology is what can be considered a value stock (P/E under 7 with large positive cashflow), even though skeptics stay away from the stock due to the cyclical nature of semiconductors (debatable in today's market situation due to high demand and industry consolidation). At the same time, the stock is in a strong upward trend on the higher timeframes,...
There are several signals for falling gold prices:
Strong resistance at 1300
Reverse pattern on resistance
Sales signal in the CCI (breaks 100 from the top)
RSI turns from the overbought area
Increasing volume at falling price
It is worth taking a look at cocoa. The price is approaching an important support at 1800. In addition, the CoT Report indicates rising prices.
You will learn more about these and other analyzes in our premium service.