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Crude Update: Covering Some And Spreads
Although we have an aggressive target down to 94.68, taking this opportunity after a difficult risk week to lock in short gains in a market which should continue to see downward path here.
Hourly 9 buy setup here and prop at 98 makes it a zone where we could chop around. The "easy risk reward" from the 109 area is now played out more or less and all we can do is trail runners.
The reason I'm not pressing on energy shorts here is because of the weird action in some of these calendar spreads relative to the underlying spot price. For example, the (last month, contract rolled already) KM spread on RBOB has been very strong.
It makes me think that hedges are still being rolled to the next month given that spike up at the KM spread. Here is the MN spread -- still strong nonetheless