Favor shorts in contango and longs in backwardation, Peter Brandt notes

Favor shorts in contango and longs in backwardation, Peter Brandt notes
Trading bias for contango and backwardation

Peter Brandt, founder and CEO of Factor LLC, suggests traders adopt a bias toward short positions when a market is in contango and lean toward long positions when the market is in backwardation.

Contango and backwardation are market conditions that signal differing expectations about future prices and can influence trading strategies.

Brandt has previously outlined key criteria for identifying credible trading gurus online and stressed the importance of due diligence before investing, as noted in an earlier guide. He has also questioned recent optimism in gold and silver markets, stating that trendline breaks may not yet indicate a clear bottom in a separate analysis. These insights reflect his cautious approach to both market tactics and evaluating trading advice.

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