* Spread traders-will you help me??
Wayne Glassford - Mon May 15 2017 at 5:28 PM
Down below I talked about the spread between Nov 17-Nov 18 beans
RBOB is anther market that is currently inverted
I have not looked at all commodities but most like silver, gold etc always show the last month of yr 18 as being higher than the last month of yr 17
Some yr 18 are very thin traded but there is some trades
However when I went down the list RBOB showed an inverted market
The inversion was as high as 100 pts at one time today
The spread closed less, not sure but maybe 60-80 pt inverted spread. Market was closed when I was able to look so take that closing number with a grain of salt until it opens again
So: I am wondering if inverted markets are a trading opportunity or not, given how almost all have higher future prices for a yr later
RBOB caught my attention and I watched it until I had to leave and then it was closed when I returned
I need some thoughts
I don't mind sharing what I found if you will help me
It takes time and work to find a trading opportunity and this is the place to discuss
Maybe I am off on a wild goose chase and need somebody to tell me why rbob had such an inversion but nat gas did not
* good spread information...
e,w,g, - Mon May 15 2017 at 6:34 PM
* Re: Spread traders-will you help me??
TJC - Tue May 16 2017 at 12:00 PM
May I hazard a reply?
The market perceives increased supply in the future. Thus, lower price further out. No need for carry--excess supply, or expanding supply, would mean lower price many months from now.