So here is a situation for today. Feeder cattle buy position was closed at -0.950 with a loss of $75 per contract. Orange juice buy limit was moved up because looks like that the chance that price will go lower to our previous buy limit are low. So the new buy limit for orange is -0.5 profit targets remain the same, but now position will be closed with loss if day closes below -0.8 and not -1.0. Gasoline buy limit is canceling because price went too high and there is no way it'll be lower at our buy limit levels in the next few days, so all the profitable movement at gasoline spread was missed. Interesting thing - when first buy limit was placed - price didn't reach it only for a 3 ticks. Also target for the average profit on a previously opened wheat spread is actually lower - $350.
And now back to a new seasonal spread. Industry analysts suggest that supply of a non-ferrous metals in the current year will be increasing faster than the increase in demand. Particularly in copper, surplus is expected to increase almost three times if compared with the previous year due to the forecast of increased copper world production in 2014 by 4.9%. At the same time in all major global markets mid season up-trend continues.
Sell statistics for May-July copper spread shows 11 profitable years out of last 13 years. Close position with a loss if day closes above 0.0065 level or anyway at around April 10th. Average profit is around $250. Sell limit is placed at 0.0055 price.
