End of the Road
The IMC blog entered a long position in the December crude oil/natural gas (x2) spread at -$20,000 (premium nat gas) on August 5th. The December crude oil contract expires today, so we’re just going to book the profits, sit on the sidelines, and enjoy our Thanksgiving turkey.
However, being on the sidelines does not mean that we are not monitoring the crude oil/natural gas (x2) spread. We are now focusing our attention on the June 2017 contracts. That spread is currently priced around -$10,650. A return to the double bottom between the January and August lows of -$15,960 and -$15,820 would have us watching for a setup to get back in on the long side. Until then, enjoy your Thanksgiving holiday!
On the long December crude oil/natural gas (x2) spreads entered at -$20,000, take profits here at -$11,600 or better to liquidate the trade with a profit of +$8,400.