Futures Commentary and Analysis

Back

Trade Spotlight: Spreads (Crude Oil)
Don DeBartolo - IF - Thu Oct 12, 4:30PM CDT

This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Spreads, published on Thursday, October 12 2017.


There is a bear futures spread trade opportunity in Crude Oil. The spread once again failed to remain above the EVEN (0.00) price level. The Stochastic indicator shows downside momentum. The MACD indicator shows a downward trend. There is a seasonal pattern for prices to sell-off in this time period. There are couple of potential support levels to break through before the target is triggered. The stop loss will be trailed down in that case.

Establishing a bearish position where a front month contract is sold and a deferred month contract is purchased. Anticipating the spread to widen negatively. Setting up a futures spread will potentially reduce the risk and volatility, as well as reducing the margin requirement in this energy market.

Sell the January 2018 / Buy the May 2018 Crude Oil spread at -0.44 using a stop order, GTC.

Initial Margin = $418 Maintenance Margin = $380

If filled:

Stop loss: Stop loss is -.21, above the 10/11/17 pivot point high, GTC. ($230)

Target: Target is -1.15, the low from last August 17 and a potential support level, GTC. ($710)

Crude Oil Spread Chart from Bar Chart

Contact your Daniels Trading broker by phone or email to place this trade.

Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or info@danielstrading.com and mention .

Risk Disclosure

STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

The post Trade Spotlight: Spreads (Crude Oil) appeared first on Daniels Trading.


Back
Markets: Currencies - Energies - Financials - Grains - Indices - Meats - Metals - Softs - Full List Contact Us