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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This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.