Wednesday, February 09, 2011

Looking at Spreads

I’m revisiting “The complete Guide to Spread Trading” from Keith Schap to get some ideas about spreads, which make “sense” and I want to share this approach with you, by posting some long and midterm charts.

Gold/Silver

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Kind of extreme move or Silver catching up with Gold in the last 12 months.

 

Gold / Palladium

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Choppy, but as you can see on the long-term chart PL/GC is forming a bottom pattern/ higher low. A break above 450 confirms.

 

Corn / Wheat

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Nice move yesterday and prices have reached the breakout level from 2010 when we went from 200 to 320 in a matter of weeks only to drop back as fast back to 165.

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Might be worth watching for a few more days, if indeed we spike up again. Seasonality supports that idea.

5 comments:

Adam Smith Forex said...

Well, looks very interesting to learn about this, but after have a look I still confuse with some of these chart.

Sam said...

Great stuff , thanks for the post , really interesting insights and I am now a regular reader, keep it up!

zulfizan said...

interesting post.thx for the post

FX said...

How's trading life? Some update after a year.

Another Brian said...

Where are you?