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.
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