Re: [RT] Oil

["Bob" <BHEISLER@xxxxxxxxx>]

Thanks Kevin.
<BLOCKQUOTE 
>
  ----- Original Message ----- 
  <DIV 
  >From: 
  Mr. Kevin B. 
  Bantz 
  To: <A title=realtraders@xxxxxxxxxxxxxxx 
  href="">realtraders@xxxxxxxxxxxxxxx 
  
  Sent: Sunday, August 15, 2004 8:06 
  PM
  Subject: Re: [RT] Oil
  On Aug 14, 2004, at 4:06 AM, Bob wrote:
  Was 
    anyone else surprised at how the indexes held up this week in the face of 
    Oil continuing its relentless rise and some not so inspiring 
    earnings reports?  Maybe it's just a pause before the indexes head 
    lower but I thought it was rather odd. 
  Equities/WTIC oil spreads are approaching 
  areas support (value). Here is a QQQ/WTIC chart:I suspect funds are 
  unwinding these types of trades...
  
  

  
  
  
  
  

  
  
  I 
    also heard a trader on CNBC state that he believes oil is within a week or 
    so of a top, and the reason he cited was the current relationship/spread 
    between the front month and outlying months.  This is beyond my area of 
    expertise so I was hoping some others would share their views.Backwardation 
  is a market condition where spot prices exceed forward prices. 
  Contango is the opposite condition, where forward prices exceed spot 
  prices. The terms are used primarily in certain commodities and energies 
  markets. In the oil market, the prevailing condition may reflect supply and 
  demand. For example, if crude oil is contango, it may indicate a glut of 
  immediately available supply. Backwardation might indicate an immediate 
  shortage.More 
  info:http://www.platts.com/Oil/Resources/Risk%20Management/crudeswaps.htmlhttp://www.mrci.com/f2578.asp 
  A seasonal spread with a14-1 win ratio, I wouldn't touch it this year.Oil 
  is in a parabolic rise and I would expect a full round trip, $28 oil and .80 
  unleaded gas...Why? We'll discuss it then...Bantz, cratering 
  to parabolic means...







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