Issue Date: November 20, 2009
For A Seasonal Trade Against The Trend: Recommend The Use of Options
There’s a fairly reliable seasonal tendency for soybean oil futures to trade lower from November 20th through December 18th. This is a simple and direct way to approach the market with one major exception; soybean oil is currently in a strong uptrend.
WHY BOTHER?
The legitimate response to the above paragraph is; why bother trading soybean oil against the trend? The answer to this question is; potential sizable profits. Indeed, if soybean oil, which appears to be in a very strong uptrend is, instead, at the top end of a very large trade range, substantial profits could be achieved if prices begin working down toward the low end of the range. My advice to clients looking to trade against the trend is to utilize options rather than trading futures.
By Dennis Smith
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Blame Game!
Let’s all try to agree on someone to blame. I mean can we at least have some bi-partisan blaming?Yesterday, before the Congress Joint Economic Committee, there was some exciting and heated exchanges between Treasury Secretary Tim Geithner and some House Republicans. There were fireworks as Republican Rep. Kevin Brady of Texas blamed Geithner for a major role in creating the economic mess we are in when he was the president of the New York Federal Reserve Bank while all the problems were going on. He called on Mr. Geithner to take some responsibility. Mr. Geithner shot back, "What I can't take responsibility is for the legacy of crises you've bequeathed this country." (Wow! This is great!) Republicans going after Democrats, Democrats going after Republicans! I thought it would come to blows.
By Phil Flynn
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U.S. Economy Climbing Out of the Great Recession
U.S. stocks have reached 50% retracement since their March 2009 lows. In addition, many foreign equity markets have recovered by more than 50%. Regardless of unemployment at almost at 10.2 % and other bearish factors the market continues to advance.
September has historically been a month the stock market declines. Last month the S&P 500 had a low of 987 and at one point made a high of 1075.75 before finishing the month at 1053. October was the anniversary the crash of 2008. The S&P 500 went from 1300 last September to 750 by the end of the year. We were told the U.S. financial system was on the verge of collapsing. Thanks to the stimulus plan from the U.S. Government the market was saved from a historical free fall. We are on our way out of the recession and the market seems to telling us that the economic recovery will be sustained.
By David Pappas
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