The worst enemy of our strategy is low inventories. Short-covering rallies on the CBOT cause pain, as I think we saw today, but not permanent damage.
We junked the long MGE/short KC position.
I will look to re-establish a long MGE/short CBOT intermarket futures position sometime. I believe that the trend-following shorts have to exit the CBOT for the MGE/CBOT spread to be attractive to us once again. As long as the CBOT leads the rally, the calendar spreads we have (short the front/long the back) may cause some further pain..we don't need additional exposure to directional wheat trades right now.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment