Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I'm of the opinion that it the bull is tired, but longer term we could go ether way, so if you are going to go short now, the question in my mind is where is your stop, and would you reverse at this point?
And USO has been a pretty crappy ETF. Tell FT we need Micro-CL!
(Yes I know CL is NYMEX)
Can you help answer these questions from other members on NexusFi?
Yeah, but it's only half size. And especially on longer dated contracts has huge spread compared to CL.
If you use USO, (putting aside performance issues) you need 15K shares to get the same % movement as a QM contract, 30K shares for CL. You'd be looking at hefty margin requirements, unless there's something I don't know about.
Not that contracts are the magic bullet. CL front month is at 107, but CLF4 (Jan '14, 148 days left) is trading around 101. If you want to establish a 6 month short position, I think a good chunk of the air is out of that tire already.
I guess that's why USO's price has become so unglued from CL. They had to eat the backwardation when they roll each quarter.
It seems to me that CL is a Chevy big block of a contract on a short term basis, but regardless of size it gets a lot more complicated longer term. It is dawning on me that commodities aren't equities, or even index futures.
I posted a while ago about starting a room via scype chat mostly text at this time but we occasionally chat for those who trade energies. I am putting it out there again for anyone who is interested to please come join in. PM me for my scype details and see if you want to hang out and collaborate.
It's one thing to get the analysis right, but how you trade it is another story...
First live trade just before news...
Second Live trade just after announcement...Really wanted to hold and hold, but plan says to exit at target with Divergence Potential on trade chart...Two nice winners