Seasonality always varies to some degree from year to year. For most markets, varying seasonality is still tied to the cyclicality of their particular feature; like spring planting, fall harvests, summer vacations, and taxes. The natural gas market, on the other hand, has shifted the volatility of its seasonal behavior from the hurricane months of late summer to the Polar Vortices of… Read more →
Tag Archive for seasonal commodity trading strategy
Our last new trade for November is short selling the February lean hog contract. The commercial hog producers are becoming increasingly anxious to get their animals sold forward at these prices against a backdrop of Chinese demand and regulatory uncertainty. Conversely, the speculators have been adding to their net long position as the market approaches solid resistance up to $.70 per/lb.… Read more →
We expect to sell the December British Pound on Wednesday night for Thursday’s trade. We’ll be risking 2.5% from the Wednesday night’s opening price. This equals 330 points or $2,062.50 per contract. Initial margin for the British Pound is currently $1,650. Finally, we plan to hold the trade through the first week of October. Read more →
The first trade for March is in the May #11 sugar futures contract. This market recently broke critical support at $.13 per/lb on bearish fundamental news. Now, we expect seasonal weakness to force this market lower, ahead of the March 8th, USDA Supply and Demand report and on through the Prospective Plantings report on March 29th, extending losses to the… Read more →
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