Today I rolled over my June Crude Oil Future to July. The July contract will be the most active from today.
Oil Futures have been a lot stronger then I expected. I attribute that to the upbeat sentiment in equities and in risky assets in general. But as I said before underlying conditions are bound to prevail and reality will set in and lower prices will follow.
Will it be here and now? Will it be 5 dollars higher? I don`t know.
Even though I am still short the NYMEX Crude Oil Futures at 59.42 dollars a barrel and I am very confident that this trade will be a good one.
Have you noticed the collapse in the contango? Its under a dollar in a month period. This is the lowest contango I have seen in almost a year.
Regarding equities I am still bearish and expecting lower prices ahead but I want to short the S&P Futures at higher levels. I can miss that trade if the stock market trades lower from here without rebounding, but I have a strong short position in oil and I would like to have a decent profit on that play before I commit any more capital to the market.
I will leave you with one of my favourive market quotes from Richard D. Wyckoff, "speculation, in its truest sense, calls for antecipation."
Have a nice trading day and if you are profitable today, withdraw some money and go out to dinner in a nice restaurant with your significant other. Trading is not a viable long term business if you don`t reward yourself and the ones surrounding you when things go well. Keep that in mind at all times.
Oil Traders Blog is a website for active online futures traders. I will provide my real time trading decisions and my market thoughts on this webpage.