Let’s take a look at the following spread HOM8-HON8 (Heating oil spread)

The Spread Indicator entered the overbought level. The indicator crossed above 80 suggesting that the June 2018 heating oil contract is weaker than the July 2018 contract.

I would consider selling heating oil June 2017 and buying heating Oil July 2018 before the closing of the market.

 

My trading ideas:

  • Sell heating oil June 2018 and buy heating oil July 2018
  • Target $250
  • Stop loss $320

If the market does not reach either the target or the stop, then exit before January 15, 2018.

Let’s take a look at the following spread SMZ7-SMH8 (Soybean meal spread)

 

The Spread Indicator entered the oversold level a few days ago. The indicator crossed below minus 80 suggesting that the December 2017 contract is stronger than the March 2018 contract.

I would consider buying Soybean meal December 2017 and selling Soybean meal March 2018 before the closing of the market.

My trading ideas:

  • Buy Soybean meal December 2017 and sell soybean meal March 2018
  • Target $360
  • Stop loss $400

If the market does not reach either the target or the stop, then exit before November 1, 2017.

These recommendations are a solicitation for entering into derivatives transactions. All known news and events have already been factored into the price of the underlying derivatives discussed. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction. No representation is being made that any account has in the past, or will in the future, achieve profits using these recommendations. No representation is being made that price patterns will recur in the future.

 

Trading Futures, Options on Futures, and Forex involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.