Inter market Spread

Long Crude Oil & Short Natural Gas

Big Picture

• 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”

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.

Trade Management

• 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

Intuition

• NO

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