Futionary - Today's Term "Seasonal" Trades

September 19, 2014 6:00AM CDT

There are various indicators to use when trading futures - Technical, Fundamental and Seasonal. Markets that tend to have more seasonal indicators are the agricultural markets, i.e. corn, beans, wheat, hogs, cattle, sugar, cotton, and so forth. Seasonal trade indicators are not limited to these markets and can occur in financial, energy and metal markets as well. When looking at a lifetime chart you can usually see when prices will rise or decline based on certain times of the year. For example: Based on one source that tracks the seasonality of the markets over a fifteen year period, September 17 th was the day to sell the May soymeal contract. May soymeal closed at 320.0 on September 17 th . Today the May soymeal is trading at 313.0. The seasonal charts indicate that this particular trade will be in a downtrend until October 2 nd . Of course, there are no guarantees and any given year can be the year the seasonal trends are adversely affected by unforeseen circumstances. But there is something to be said for patterns and continuity and the seasonals should not be ignored. For more information on seasonal trades, how they work and the risk/reward based on a fifteen year analysis, please give me a call.



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