Hi Jim. The way I understand it is that DXO uses futures
markets to get exposure to oil prices. Oil markets are
currently in a state of contango (the futures price is above the
expected future spot price and the price will decline to the
spot price before the delivery date). Contango can intimate a
market perception of oversupply. Funds that use futures need
to roll their contracts from month to month to maintain
exposure. When markets are in contango, the funds lose money
on the trade and can see higher losses than what is suggested by
the spot market.
By the way, exchange traded products let you trade futures
without a futures account but also carry credit risk and possibly
higher taxes.
hope this helps.
Happy holidays to all and thanks to all for the great posts.
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neg divergence in 6 min
Posted by cmaslin on 2nd of Jan 2009 at 01:29 pm
neg divergence in 6 min and 15 min sp to macd
happy new year
Posted by cmaslin on 31st of Dec 2008 at 04:04 pm
To Matt, Dodgerdog, RP, Ravun, and the rest of the gang thanks for all of your valuable insights to the market
- have a happy, safe, and healthy new year.
reply to jim on dxo
DXO
Posted by cmaslin on 24th of Dec 2008 at 11:15 am
Hi Jim. The way I understand it is that DXO uses futures markets to get exposure to oil prices. Oil markets are currently in a state of contango (the futures price is above the expected future spot price and the price will decline to the spot price before the delivery date). Contango can intimate a market perception of oversupply. Funds that use futures need to roll their contracts from month to month to maintain exposure. When markets are in contango, the funds lose money on the trade and can see higher losses than what is suggested by the spot market.
By the way, exchange traded products let you trade futures without a futures account but also carry credit risk and possibly higher taxes.
hope this helps.
Happy holidays to all and thanks to all for the great posts.
great call on the chop
SPY 5 min.pngSPY 5 min dynamic chart here's another way this ...
Posted by cmaslin on 17th of Dec 2008 at 02:05 pm
great call on the chop out Matt, but I think
SPX has a big resistance level to clear (916.5) before continuing wave 5.
bullish falling wedge?
Posted by cmaslin on 10th of Dec 2008 at 03:01 pm
does anyone see a bullish falling wedge on sp futures 1 minute map?
great call on short
spx 789....811 to short......
Posted by cmaslin on 21st of Nov 2008 at 03:49 pm
retest of hi on spx
SPX 5 min chart.pngbunch of triangle consolidation, here's a 5 ...
Posted by cmaslin on 21st of Nov 2008 at 03:08 pm
es breakdown
Posted by cmaslin on 4th of Nov 2008 at 02:13 pm
es is breaking down very little support below 993 watch for buying oppty