Platinum/Gold futures-the smart move

[neilgin1]

this is NO trade recommendation, and what i'm outlining is EXCEEDINGLY risky, but if you're involved in the PM futures, usually, if you see Platinum trading under Gold, you can buy either Oct or Jan Platinum 20 to 30 dollars under Dec Gold, you should put in a SPREAD order, that would read "buy 2 Jan Plat/ sell 2 Dec Gold ---market".....but before you put in a market order, get a quote, on what the bid/ask is, on this spread. i've havent traded futures in almost 10 years, so i dont know what the margins are, vis-a-vis spreads, but usually they're lighter than an out right long or short pos.......and i used to get my spread quotes from the pit and i know everything is e platform, so i dont know if they post spread quotes.

so lets say you buy Jan Plat 20 dollars under Dec Gold, and you want to go for a short pop to Jan Plat trading 50 dollars over Dec Gold, you peel off one of the 2 cars,and you let the other ride to shoot for an objective of Plat trading $100 to $200 over Gold...thats some good profit, but i got to tell you, this is an VERY risky trade, because all the old "relationships" between commodities, especially PM's have changed. Gold is obviously the go to PM for high value individuals, and Platinum is a back water, so if we trade crazy to the upside in Gold (and Plat and Silver) the Gold will take the lead, and you could get hosed.

for instance Chicago Wheat is trading UNDER Corn, which is unheard of, back in the daze, this would be a gimme trade, meaning buy the wheat, sell corn against it. But since the Corn market trades both as an agricultural future AND an energy future, that old relationship is askew...ie Corn could stay above or even with Wheat for months....so just as that is, Gold COULD trade above Platinum for weeks, months, but there's a good chance, the relationship will revert to its "normal", Platinum trades over Gold, so if you got a wild hair, and some risk capital, go for it, BUT DONT ANYBODY BLAME ME, if you get nicked......now if you asked me, would YOU do it, under those conditions?

well if i had the capital, and i was needing some adrenalin, i might...but i'll tell you what....doing that, i'd be going for the tranquilizers bottle a mite bit, and quick to pull the pin if she went against me in the slightest...its not a trade for the faint of heart. you been warned. lol
ps..thats why i like stacking physical silver...i dont have that old crazy stress that futures can give you...and believe me, the stress and nightmares can be INTENSE...or like i heard one vet trader say to another in the exchange elevator in 1983, "man, this aint easy!" and the other trader said, "[shucks], if it was easy, kids and ni###rs would be doing it"...i never forgot that politically incorrect nugget, as i was 23 and still a kid.