SpreadEdge Capital specializes in seasonal spread trading across a wide variety of commodity markets. A spread trade is the simultaneous purchase and sale of the same commodity with different delivery dates. SpreadEdge publishes a weekly Newsletter that provides several seasonal spread trade opportunities every week.
Overview
The Commitment of Traders (COT) report, issued by the Commodity Futures Trading Commission (CFTC), offers a weekly snapshot of the positions taken by different market participants in the U.S. futures markets. This information aids traders and analysts in comprehending market sentiment and developments. Published every Friday at 3:30 PM Eastern Time, the COT report reflects positions held as of the previous Tuesday's closing business hours. Peak Trading Research assesses the latest COT report, examining alterations in price and open interest to provide an appraisal of net fund positioning daily.
Hedge Fund Position Estimates
Heating Oil
Heating Oil dropped back down to its lowest hedge fund positions over the past 52 weeks. After a brief bounce higher in mid-June, hedge funds have now sold Heating Oil for the past 3 weeks.
Gold
Gold is now near its highest hedge fund position levels over the past 52 weeks. Gold has been hovering above 200,000 net long contracts for the past several weeks.
Others
Gasoline is just off its lowest level over the past 52 weeks.
Conclusion
I continue to hold a long Heating Oil November, December calendar spread. The trade should benefit when hedge funds begin to add to their record low positions.
More Information
Use coupon code “SpreadEdge” and get the Weekly Newsletter and Daily Alerts for $1 for the first month.
For a limited time, you can receive my Futures Training Videos for free with a 3-month, 6-month, or 12-month subscription.
For a FREE eBook about the SpreadEdge seasonal spread strategy.
More Information
The SpreadEdge Weekly Newsletter is published every weekend and provides a broad overview of the important seasonal, technical, and fundamental indicators within the Energy, Grains, Meats, Softs, Metals and Currency markets. In addition, spread trade recommendations and follow-up on open trades is also provided. For a free copy of the Weekly Newsletter, please send an email to info@SpreadEdgeCapital.com
Darren Carlat
SpreadEdge Capital, LLC
(214) 636-3133
Darren@SpreadEdgeCapital.com
www.SpreadEdgeCapital.com
Disclaimer
SpreadEdge Capital, LLC is registered as a Commodity Trading Advisor with the Commodity Futures Trading Commission and is an NFA member. Past performance is not indicative of future results. Futures trading is not suitable for all investors, The risk associated with futures trading is substantial. Only risk capital should be used for these investments because you can lose more than your original investment. This is not a solicitation.
On the date of publication, Darren Carlat had a position in: LOX24 . All information and data in this article is solely for informational purposes. For more information please view the Disclosure Policy here.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
