Yesterday, we saw the futures contract for the May delivery in oil drop to zero. Now you may log into your trading platform and find that the price of oil did not do that, that is because you’re looking at the spot price, the futures contract when you buy it, and let’s say you don’t sell the contract that you will have, then oil delivered to you.
Futures contracts are there to protect producers of commodities against the prices of the future, but as you can see in the news any new speculators had a nasty first experience!
Now if you have ever imagined being part of a crash and you weren’t able to be a part of this one, then don’t worry because you can still trade the S&P500 ETF to sell it below 220.00.
Yes, that does mean we are expecting a stock market crash, so stay alert, we could see signs of it unfolding this week. Unemployment claims numbers are coming out this Thursday, stay tuned for them.