What a crazy week this has been! Nearly a 100 point range in the S&P 500 and more than a 4.5% range in bonds!
Quantitatively speaking it's been a pretty quiet week in our trading. The cocoa trade we discussed in TraderPlanet has consolidated throughout the week. The consolidation does allow us to adjust our stops accordingly as well as provide an additional point to add on to the trade once it starts moving in our anticipated direction.
You can recap the details in, "Commitment of Traders Report Supports Cocoa."
Please call in for our evolving risk profile in this trade. The current consolidation provides a couple of technical points that can help put the odds of increasing the bet size in our favor.
You can reach Vicki or Andy at 866-990-0777 until 4:15(EST)
We moved from cocoa to corn based on a new (for us) discovery of a peculiar pattern in commercial long hedging behavior through the harvest. This brief piece for Equities.com ended up being the focus of our weekly piece. Continued review of the charts and calculating the data revealed the type predictability necessary for successful trading. This may only be a once a year occurrence but, it's better to trade once a year successfully than all year, poorly.
Corn Harvest Through the Commitment of Traders Report
Finally, we have released many of these strategies in their mechanical forms. You can view their hypothetical equity curves and pick and choose the markets your interested in to create your own basket of markets and their summed equity curve as well as your long or short bias. We feel it's important to be able to adjust the long or short bias of a commodity portfolio based on where we stand within the economic cycle.
COTSignals - Equity Curves
