The ratio of the price of oil, in comparison to natural gas, is very high right now compared with historical standards. This article does a good job of explaining this (it's a few months old, but the ratio is still roughly the same).
The author is not a fan of going long nat gas and shorting oil - but I disagree. I think that is a logical 'hedge fund-esque' strategy, given the current price discrepancy. Oil could have trouble holding at current levels if the US does fall into recession (I think we're already in one). Sure, most of the growth in oil demand is from China - but will it continue at this pace if the US consumer stays in the fertile position?
Anyway a viable strategy to consider - though I am still partial to the grains and softs at this point in time.
Subscribe to:
Post Comments (Atom)
Most Popular Articles This Month
-
This Thursday, we're co-hosting a free "trading training" webinar with our colleagues at TradingWins.com . Our goal is ...
-
Our soft commodity flavor-of-the-month, cotton, has seen its near term futures surge "limit up" for the second day in the row. Wa...
-
The gold standard these days has been reduced to a distant memory and fantasy of hard money proponents. IF we returned to a gold standard, ...
No comments:
Post a Comment