GKM

Spreading Oil and Natural Gas: A Post-Labor Day Plan

Why not trade the spread of apples against oranges next? I used to work in the natural gas industry and essentially there is no correlation in the near term for many reasons. Why dilute a trade with a spread? If you're bullish natural gas, then buy nat gas. If you are bearish oil, then sell oil. This way you only have two variables to worry about, otherwise you have 3. Never make trading more complicated than it has to be.