Commodity Spread Charting

rmoskal

Does anyone know how to make a chart that represents the spread between two commodities?

gord

This is a new feature that was announced at ChartCon2014.

Difference Symbols
• We have always had ratio (division) symbols for charting relative strength - ex. IBM:$SPX
• Now we also support difference (subtraction) symbols for charting spreads ex. $TYX-$TNX



http://stockcharts.com/h-sc/ui?s=$TYX-$TNX&p=D&yr=2&mn=0&dy=0&id=p10772574509

dreamtalk

You can also use Relative Rotation Graph (RRG) Charts. Here is an example for Gold (GLD) and Copper (CU). RRG Charts are great for pair trading.
http://stockcharts.com/freecharts/rrg/?s=CU,GLD&b=$SPX&p=w&y=1&t=10&d=20140826&r=95.91,104.06,98.25,101.46&f=tail,d

Julius_RRG

Hi Dreamtalk, excellent use of RRG! The only think you may want to look at is the benchmark that you use. In this case you are using the (default) S&P 500 EQUITY index with two commodities, precious metals to be precise. You will probably get an even better handle when you apply a more suitable benchmark like $DJAIG (a broad commodity market index) or $DJAPR (a precious metals index).