Super Contango Warning

By xiexgp@gmail.com, June 23, 2014

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Anyone know what Robert Williams of WSD is teasing with his latest ”Super Contango Warning”?

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4 Comments on " Super Contango Warning"

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rrrong
Irregular
0
rrrong
June 30, 2014 1:25 am

Come on Gumshoe, help us out. Williams claims we can be wealthy by the 4th of July. For the greedy among us there is a real sense of urgency — why be wealthy when we can be filthy rich

andy451
Irregular
217
andy451
July 1, 2014 4:27 pm
Ok Ron, so we know that it is probably a commodity, right? And to be wealthy by the fourth of July . . . let me think for a minute son. Yes, I think this can be easily done, selling catsup, hamburgers, maybe beer and things, glow -in-the-dark red-white-and-blue shoestrings in the blazing hot sun, right out there now on highway 61. Is it one of those? If so you can thank Bob Dylan. Maybe he knows. This is just a couple of commodities to get you started. My last thought is fireworks. What do you think it is? It’s… Read more »
Tom Slover
Guest
0
July 3, 2014 2:34 pm

My guess is that he is talking about Helium. National reserves in the Texas Panhandle are almost depleted and very little new helium is being extracted. Helium has several industrial uses. Not simply used for party balloons. Can anyone confirm?

Paul
Guest
0
Paul
July 5, 2014 5:30 pm

Could he be talking about wheat? As of the close of business Thurs 7/3/14 the spot price of wheat was $599-4 while the March 2016 contract was $678-2.

Contango should be the normal state of the futures curve for wheat due to storage costs. But I don’t think wheat is that expensive to store to account for the 13% difference in price. If this is what he is referring to, how to take advantage of it with the most leverage? The only wheat ETF (WEAT) does not currently offer options further out than January 2015.

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