Soybean / Soymeal Spread

I finally entered Soybean / Soymeal spread trade.

Short Mar Soybeans (SH08) at 1236.25
Long Mar Soybean Meal (SMH08) at 343.9

Since this is a long term position, I used market orders for both. A bad mistake. Slippage kicked in and I got filled almost at the bottom on Soybeans. In fact I placed an order to buy SM first, but got filled on S. I guess whenever you use market orders, someone knows and takes advantage of it. Lessons learned.

Anyway, the spread between S and SM is about $15000, but now it's $27500!!! The profit would likely come when S drops. If that happens it'll happen pretty quickly. Today My drawdown went as high as -$750 (what a way to start 2008) this morning since all the grains are screaming higher and this is a long term trade until it realizes at least $5-10K gain.

Update (on 2/20/08):
I rolled over to May contract by doing to following:
Bought March S at 1391.50
Sold March SM at 360.2

Sold May S at 1409.4
Bought May SM at 367.5