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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (16787)	1/27/2009 7:43:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 71454

Yes, it makes sense in a larger context, ie, one is long oil (or had the Dec Contract delivered and stored) but not very bullish and has a short on a long term contract at a decent 55 to 60 price out. I think dumb funds buying the front months and rolling it over near expiry pay the piper. I tried to beat the house once, when the spread jumped from 4.75 to 8.50 in one day. I entered short positions at 7.5 and over 8 and had to wait quite a time for the fade. It actually barely faded going into delivery. Well I considered it as haphazardous as trading the EUR above fair value (happened in October) as a result of the TED spread and high libor. But It took weeks until things normalised and first it moved from the usual 30p discount to par and then to par + 40 at one point.