Beloved Slope of Hope member Market Sniper (aka Dutch to those who knew him) persistently promoted the search for, and trading of edges.
He shared quite a few with fellow Slopers over the years, including the end of day ramp trade, and his Nadex trade setups.
It is in that light that I share with you an interesting discovery that I’ve been forward watching for quite a while.
Now some of you may know that whenever the subject of USO gets posted about on Slope, you’ll soon enough see me respond that it’s far simpler to trade HES instead.
You’ll find Hess tracks very closely with /CL, and you’ll face none of the problems that $USO poses (such as the mixed futures contract make-up, roll costs drag, and tax complications involved with trading the ETN).
But about a year ago while looking over charts, I noticed something rather unusual about the relationship between HES and /cl (the continuous contract).(more…)