Trade ideas for Second Half of Year

(1) As you know there is a tight correlation btw S&P 500 and WTI. I think as traders start to realize World Supply is increasing and US rig count is meaningless the funds will take of the algorithms correlation will start to breakdown and spread will widen.  Play the divergence of correlation.

(2) As the year proceeds supply increases (Not Just US) and US steadily increases exports.  "REAL" price competition will show up in market and the WTI vs BRENT price will tighten.  Play this convergence of spread.

 

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(edited)

OilPrice MONITOR.  I posted this on the TRADING blog. Somehow it ended up on OIL GENERAL. Can you move back to TRADING BLOG 

Thanks

Edited by Falcon

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