I'm in Hate with the Market

This market is frustrating and I willfully gave money to the Worldwide Starving Traders Fund this morning.  Not much, just enough to piss-me-right-the-heck-off.  I decided to write a list of what traders need to keep in mind during frustrating markets.

1)  Emotional Control - Ultimately, we have the power to determine our thoughts.  A good friend of mine says, "It doesn't require anymore power to think positive thoughts, rather than negative thoughts.......so choose positive".

2) Focus - Reorient your thinking process and focus on your strategy and setups.  I cannot let the market woo me into a "marginal" position.  Take a walk.  Stepping away from the screens and getting some fresh air is usually enough to break the pattern.

3) Discipline - Now that you have found your mojo again, stick to the plan.  Do not take a flyer because of a hunch or a low risk trade that doesn't quite meet your standards.  Hit singles.  This is the Rod Carew baseball card that sits on my desk.  Helps me remember to hit singles.  Rod Carew hit singles and didn't swing at too many bad pitches.  Oh yeah, Mr. Carew was inducted into the Hall of Fame in 1991.

4) Distractions - Eliminate anything that is taking your focus off the task at hand, making and preserving money.  TV, music, phone, wife, kids, dog, screaming trader sitting next to me.  Whatever it is, do your best too remove it.

I had lunch with a great friend and trusted advisor.  The meal was good, convo was better but we prayed before we ate and that is what cleansed my spirit.  I am now back at the turret and ready to finish the afternoon.

Be Blessed,

Hemi

Oil, Oil.....WTI vs. Brent

Good morning folks.  Oil markets are in weird place again and the WTI/Brent relationship is out of whack over the last 2 days.  Since the close on April 1st, WTI is ~-.17% and Brent is ~+2.35%.  Now, I know there is the mess in Libya and Rebels are trying to sell oil to raise funds for fighting Quaddafi, Kaddafi, Gaddhfi....however you spell it.  But this move seems a little too much, too quickly.  I have been long the WTI/Brent spread since the middle of March and continue to be long, I am now long May WTI/Brent on the ICE.  I added to my position this morning as I feel that the physical arb's will come in an close this to a more acceptable level again.

The above chart is the spread based in bps difference from the close of April 1st, 250 bps in less than 2 trading sessions is a lot and worth a fade in the -13.75/-14.00 range and should be good for .50/1.00 in the short term.  I am looking for this spread to revert back to the -10.00 range in the next 6 days before expiration on Thursday April 14th.  Below is a chart displaying the actual price data.

Be Blessed,

Hemi