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Re: December Coffee
Posted by Tango
on October 21, 2020, 9:47 am, in reply to "December Coffee
Hi JuanV. Great to see you in the forum and to read your comments. I donít know if we will see the lows that you mention. There has been good trade buying at these levels and all the way down. Although the market continues to feel heavy. As to the DecMar spread, it has generally been following the trend of the outright market. Several commercials bought options expecting spreads to go premium and in the last couple of weeks they have been liquidating and buying puts. Funds are still selling and the more they sell the less will the spread drop, imo. Even though the roll isnít until Nov, Dec has been the target of liquidation. Right now the spread is at a standstill but on the defensive side,
BTW although Algos are known to continue to sell as long as the trend is lower, it has been my observation that at a certain point, usually below 100.00, they will stop and may cover.