The Technical Hedger

This bi-weekly newsletter offers producers and consumers of energy commodities a view of today’s markets based on mathematical and classical technical analysis.

We define the “trend” as bullish/bearish/neutral based on the close of the actively traded front month futures contract vis-à-vis a mathematically derived technical indicator.

We define the direction of the basis as the front month-next month futures contract spread’s close in relationship to a mathematically derived technical indicator.

We define the trend of volatility as the “trend” of the actively traded front month futures contract based on a mathematically derived technical indicator.

Hedging Strategy is driven by classical technical analysis and includes:

• Percentage of physical hedged, where the upper boundaries are set to 95% and the lower boundaries are set to 20%.
• Duration – the tenor of the strategy could be as low as one month and as high as 18 months.
• Instruments – Typically include futures, options, synthetic futures (aka “collars”), bear put spreads, put backspreads.

Assets analyzed include:

Crude Oil (WTI, Brent)

NY Harbor ULSD

ICE Gasoil ARA

NY Harbor RBOB Unleaded Gasoline

Henry Hub Natural Gas

Our analysis includes a technical view of:

Direction of energy commodities

The direction of the (front month-next month) basis

The trend of volatility

Our commercial hedging strategy

In addition, each issue includes a “featured chart” which showcases our technical view of a specific commodity.

Disclaimer: This report is intended solely for educational purposes. Investing and trading involves considerable risk and losses can be substantial. Weissman Consulting LLC is not responsible for any business actions, market transactions, or decisions made by readers based on information published, suggested, or recommended in this report.