inter market spread trade
TRANSCRIPT
![Page 1: Inter Market Spread Trade](https://reader035.vdocument.in/reader035/viewer/2022080212/559bddad1a28ab44568b45ee/html5/thumbnails/1.jpg)
Inter market Spread
Long Crude Oil & Short Natural Gas
![Page 2: Inter Market Spread Trade](https://reader035.vdocument.in/reader035/viewer/2022080212/559bddad1a28ab44568b45ee/html5/thumbnails/2.jpg)
Big Picture
![Page 3: Inter Market Spread Trade](https://reader035.vdocument.in/reader035/viewer/2022080212/559bddad1a28ab44568b45ee/html5/thumbnails/3.jpg)
• CL has below average volatility thereby making the condition of the market a “quiet uptrend”
• NG has above average volatility thereby making the condition of the market a “volatile uptrend”
![Page 4: Inter Market Spread Trade](https://reader035.vdocument.in/reader035/viewer/2022080212/559bddad1a28ab44568b45ee/html5/thumbnails/4.jpg)
Intraday Fundamentals
• Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in natural gas futures in the week ending February 18.
• Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in oil futures in the week ending February 18.
• A 65-mile stretch of the Mississippi River and the Port of New Orleans were closed to maritime traffic until further notice Sunday after a barge carrying light-crude oil collided with a towboat, spilling oil into the river.
• The barge spilled more than 10,000 gallons of oil affecting the nearby riverbed, leaving a “long-term impact” in the sediment.
![Page 5: Inter Market Spread Trade](https://reader035.vdocument.in/reader035/viewer/2022080212/559bddad1a28ab44568b45ee/html5/thumbnails/5.jpg)
Trade Management
![Page 6: Inter Market Spread Trade](https://reader035.vdocument.in/reader035/viewer/2022080212/559bddad1a28ab44568b45ee/html5/thumbnails/6.jpg)
• I bid for CL at 102.24 and made an offer for NG at 6.397, thereby completing both the legs of the inter market spread
• I bid for NG at 6.164 and hit the bids in CL at 102.81 exiting the spread trade
![Page 7: Inter Market Spread Trade](https://reader035.vdocument.in/reader035/viewer/2022080212/559bddad1a28ab44568b45ee/html5/thumbnails/7.jpg)
Intuition
• NO
![Page 8: Inter Market Spread Trade](https://reader035.vdocument.in/reader035/viewer/2022080212/559bddad1a28ab44568b45ee/html5/thumbnails/8.jpg)
Review
• I did a good job in identifying the trade
• I was anxious to exit the spread trade as it was my “first” trade of the day and I wanted to close positive to start the day
• I saw a 100 lot offer and I added a stop above it which was hit in NG to get me out but the market went on to make new lows just after that
• I should have kept a little more patience
• I CAN IMPROVE EVERYDAY