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Contango - Category Archive

Feb 20

Signs of Market Rebound

Filed under Contango, Discrepancy Trading, Dow Jones, Stocks, Technical Analysis

Resuscitating Dow
Resuscitating Dow
Yesterday the Dow closed lower than November lows at 7475. At the time of writing the Dow is trading at 7405, down 0.8% from close. Tempting, but no. We are going to have to refrain ourselves from opening up more long positions. The charts are ugly - yesterday’s move down was strong and solid, but lack the panic we were expecting. For now, it is just a steady move down. We are expecting a turn anytime now - the sooner we get that Knockout Punch (ie 3-4% down night = 300 point drop), the better for all of us. If it keeps moving steadily and gradually down, the lower the turning point will be and the more delayed it will be. At this point, no one is able to predict the level of the turning point. We are hopeful for 7280 +/- 50 points, which would fit the 3-4% from yesterdays close (7475 - 300 points ie 4% = 7275). Magik however identified a lower support at 7270 - beyond which all hell breaks loose. If that gives way, we think manipulators would make an all out attempt at sub-7000. If you have not noticed by now, the markets love round numbers - and this is because people set their stops at round numbers (so it makes sense to take them out before turning, up or down). Continue…

All entries filed under Contango

Oil Contango Trade: US Light Crude March vs April 2009
no responses - Posted 02.13.09
TheInflationist experiments (kids, do not try this at home) with another trade which could make us a fortune. There is a contango for US Light Crude Oil between the March and April 2009 contracts. We were introduced to the concept not long ago after reading Jim Rogers' Hot Commodities, and we ...continue

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