Authored by Vittoria Onufrio via Halifax America Spread Trading Newsletter
Let’s take a look at the following spread CLF8-CLG8 (Crude oil)
The Spread Indicator entered the overbought level. The indicator crossed above 80 suggesting that the January 2018 crude oil contract is weaker than the February 2018 contract. I would consider selling crude oil January 2018 and buying February 2018 at the closing of the market.
Let’s take a look at the following spread OJH8-OJK8 (Orange Juice)
The Spread Indicator entered the oversold level. The indicator crossed below minus 80 suggesting that the March 2018 Orange juice contract is stronger than the May 2018 contract. I would consider buying Orange juice March 2018 and selling Orange juice May 2018 at the closing of the market.
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