August 26, 2009 By: Matthew Bradbard The way I explain this trade is that a ratio has gotten out of line and we are looking for it to get back in line. That does not mean back to 8:1 or even 10:1 (which has been the norm) but at least a reversion closer to the [...]
The 100 day moving average in crude oil remains the line in the sand, in August at $58.82. We feel we’re getting close to an interim bottom but will remain on the sidelines until a bottom is confirmed. Natural gas is basing out for the last 3 days, the trading range has been 15 cents. [...]
As we hinted at all week crude looks tired so we figured we would get some money in play, we advised clients to buy the August $70/65 put spreads…fill today at $1,850. We expect to see a trade down to $66 in August in the next 2 weeks. We also advised clients to lighten up [...]
