October 2012 / March 2013 SUGAR spread By: Brian Cullen
I look to get back involved in a spread that we were involved with back in June with a positive outcome. The formation once again looks like a great spot to re-establish the trade.
The fundamentals remain mixed as supplies and production appear to be on pace for the year, which has lead to the 400 point sell-off since the end of July. However, open interest continues rise and has reached the highest levels since our involvement in late June. This perhaps is suggesting we have quite a bit of short positions that have been added as we reach oversold territory. Should these traders begin to head to the sidelines, this should provide the support needed in this October contract for this spread to narrow before October comes off the board. Continue reading "Technically Speaking: Markets you should be watching RIGHT NOW!"