Joe Ross' Spread Scan Newsletter

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Spread Scan Issue: May 30, 2007 - Volume 146

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Otherwise, welcome to this week’s issue of the
Joe Ross Spread Trading Newsletter.

Each week we present spread trading examples and opportunities in order to help you become a more professional spread trader.

Andy's Spread Scan Example:

This week we look at RBU7 – RBN7.

Today we consider a calendar spread: long September 07 RBOB Gasoline and short July 07 RBOB Gasoline (RBU7 – RBN7). This spread is what a spread trader calls a "bear spread". The nearby month (July 07) is on the sell side, and the spread should gain over the September 07 contract (the spread should move up) as soon as the RBOB Gasoline market declines. That's because the nearby month usually moves further then the deferred month.

Traders may want to enter the spread at a value of – 9.38. Please ask your broker about the margin. Suggested risk is $1,500. Initial projected objective is $1,500, then a move to -2 or higher. Basis is seasonal (app. 6/4 – 6/21) and a 1-2-3 low. This spread is recommended only to experienced traders with deep pockets.

Previous Trades:

Andy Jordan's Trading Bites

Student's Question: "Andy, do you recommend our taking ALL your trade considerations from Traders Notebook?"

Andy: No! I would never recommend blindly taking all the trade considerations from Traders Notebook. It is meant to be a teaching newsletter for traders who want to learn spread or position trading. By blindly taking all the trades, you would never learn to trade on your own. You should filter out your own trades. Take only the trades which pass all your personal filters (i.e. the markets you trade or your personal entry signals). If a recommendation doesn’t fit your trading parameters for whatever reason, don’t take the trade. Traders Notebook helps by giving you some trading ideas, and shows you how trades can be executed. But you should never blindly take any trade recommendation as long as you are not completely convinced it is suitable for you!

A beginning Spread Trader, just starting out in learning to trade spreads.

An experienced Spread Trader who wants to take advantage of all the features and benefits that Traders Notebook offers daily, such as directing you to spreads you might want to trade.

A Day Trader who wants to trade Stock Indexes and Currencies using Futures Spreads.


You have subscribed to Joe Ross' Weekly Spread Scan Newsletter. If you have problems reading this newsletter, please follow this link: Spread Scan Issue: May 30, 2007 - Volume 146 This email was sent to you by Trading Educators. To ensure delivery to your inbox (rather than to bulk or junk folders) please add info@spread-trading.com to your address book. To unsubscribe, scroll past the end of this newsletter and click the "unsubscribe" link. Otherwise, welcome to this week’s issue of the Joe Ross Spread Trading Newsletter. Each week we present spread trading examples and opportunities in order to help you become a more professional spread trader. Andy's Spread Trading Example Previous Trades Andy Jordan's Trading Bites New Trade Opportunities with Trade Consistency Contact Us Be sure you receive all your issues of Spread Scan so that you can continue to enjoy learning through the best free educational trading information available, and so that we can keep you informed about additional educational services and products to help you grow as a successful and profitable spread trader.
About Joe Ross - click through here	About Andy Jordan - click through here
Andy's Spread Scan Example: This week we look at RBU7 – RBN7. Today we consider a calendar spread: long September 07 RBOB Gasoline and short July 07 RBOB Gasoline (RBU7 – RBN7). This spread is what a spread trader calls a "bear spread". The nearby month (July 07) is on the sell side, and the spread should gain over the September 07 contract (the spread should move up) as soon as the RBOB Gasoline market declines. That's because the nearby month usually moves further then the deferred month. Traders may want to enter the spread at a value of – 9.38. Please ask your broker about the margin. Suggested risk is $1,500. Initial projected objective is $1,500, then a move to -2 or higher. Basis is seasonal (app. 6/4 – 6/21) and a 1-2-3 low. This spread is recommended only to experienced traders with deep pockets. back to top
Previous Trades: On April 22 we told subscribers of our professional daily spreads & position trading newsletter, Traders Notebook, "Consider entering an intra-market spread LHM7 – LHN7 MOC on 04/23. Margin for the spread is $675 (reduced margin). Suggested risk is $400. Initial projected objective is $400, then a move to 2.0 or higher. Basis is correlation (app. 4/15 – 5/10) and a 1-2-3 low. Comment: The spread broke out of its 1-2-3 low a few days ago, but it is still possible to enter the trade. Please check with all your other meats spreads! LT for LHM7 is 6/14." Here's how we suggested managing this trade: 04/23 In? 05/14 Spread hit first suggested target. Suggest moving stop to -0.325. 05/16 Suggest moving stop to 0.300. 05/18 Suggest moving stop to 0.525. 05/21 Suggest moving stop to 0.650. For more information about our daily newsletter, visit our Spread Website to find out more about Traders Notebook Questions or Comments? Please email us: support@spread-trading.com back to top
Andy Jordan's Trading Bites Student's Question: "Andy, do you recommend our taking ALL your trade considerations from Traders Notebook?" Andy: No! I would never recommend blindly taking all the trade considerations from Traders Notebook. It is meant to be a teaching newsletter for traders who want to learn spread or position trading. By blindly taking all the trades, you would never learn to trade on your own. You should filter out your own trades. Take only the trades which pass all your personal filters (i.e. the markets you trade or your personal entry signals). If a recommendation doesn’t fit your trading parameters for whatever reason, don’t take the trade. Traders Notebook helps by giving you some trading ideas, and shows you how trades can be executed. But you should never blindly take any trade recommendation as long as you are not completely convinced it is suitable for you! back to top
Good Trade Management Trade Consistency New Trading Opportunities Traders Notebook is the premier spread and position trading newsletter, the only one of its kind, available to you as our loyal Spread Scan Subscriber. Choose your subscription term and try it out! Traders Notebook is definitely for you if you are: A Position Trader A Long-term Trader. A beginning Spread Trader, just starting out in learning to trade spreads. An experienced Spread Trader who wants to take advantage of all the features and benefits that Traders Notebook offers daily, such as directing you to spreads you might want to trade. A Day Trader who wants to trade Stock Indexes and Currencies using Futures Spreads. Traders Notebook lets you in on high probability futures position trades. These trades are hand-picked by Andy Jordan and Joe Ross. They are very carefully chosen for optimum results. Traders Notebook also directs you to all the spreads you might want to trade. Subscribers have daily access to online help and advice. Spreads are chosen by Andy Jordan, our Trading Educators' professional spread trader. We believe Andy is one of the best spread traders in the world! Follow this link for more details and sign up for our PREMIER Spread & Position Trading Advisory Newsletter to increase YOUR success and make YOUR trading a more rewarding trading experience.
View last week's Spread Scan # 145 - May 23, 2007
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Disclaimer: The Commodity Futures Trading Commission has asked us to advise you that trading spreads is complex and carries a high degree of risk. While there is opportunity for incredible wealth building, there is also the risk of losing even more than you invested. Of course, that's not unlike most other businesses. But informed traders are the best traders!