Monday, 10 June 2013

Spread Traders Nightmare - Lean Hogs Blow Out

Today was one of those days where everything just rose and no pull back yet. Euribor Spreads are all drifting higher, Short Sterling Spreads have pushed up a couple of ticks along all 3 month Spreads. But the big mover today was in the Agriculture space.
I don't often talk about my trades in Lean Hogs and Cattle, but its something that I have been trading more of over the past few months, and it has been going pretty well until today when we had a text book break out, and then every body exiting the Spread at the same time, and as every text book describes, the capitulation trade set in, getting out at market at which ever price, and low and behold ended up paying the high taking a huge loss.
Below is the chart of the Aug13 Butterfly with the 80 tick break out!




Lets hope for some normality from tomorrow!

No comments:

Post a Comment

Front month WTI Futures plunges to negative $37 as storage costs rocket

It was a move of epic proportions in the front month WTI Crude futures, the significance of which is not really known of yet, but was incre...