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2nd Time For The Feeder Cattle Futures Spread

October 14, 2015

Back in September I wrote about a trade for the feeder cattle bear spread that presented a good opportunity. The trade worked out very quickly as the cattle market was in the middle of a sharp downward trend. Fast forward to October and the cattle market has corrected back to a point of stability. Along…

Betting On Cold Weather – Heating Oil Futures Bull Spread

October 9, 2015

Betting on a cold winter? To be more specific, this heating oil futures bull spread is betting on cold weather is the Northeast where the product is predominately used. Any drop into subzero temperatures should be enough to drive the market. What makes this spread appealing is the common price cliff between March and April.…

Seasonal Hog Bear Spread

October 6, 2015

The grilling season is over so it isn’t a surprise that demand for pork drops off. After taking a look at the last 15 years of charts, a pattern emerges of a drop from about the beginning of October to mid-November for the Dec15-Feb15 hog futures spread. The entry target, relative to the historical range,…

KC Wheat vs. Chicago Wheat Futures Spread

October 2, 2015

Minneapolis (Hard Red Spring) wheat is the king of the wheat varieties. The high protein levels make it superior. The next in line is KC (Hard Red Winter) wheat and Chicago (Soft Red Winter) wheat sits at the bottom of the rung. Importers and millers are most interested in the HRS and HRW wheat. Due…

Feeder Bear Spread: An Exit Opportunity

October 1, 2015

I recently wrote about a feeder futures bear spread that looked like a good opportunity. Well, that spread has come to fruition faster than expected with the short January feeder vs long March feeder trading as low as 1.275 today. If you entered at my recommended 2.50, an exit at 1.50 or lower will net…

Long-Term Note Futures Spread

September 30, 2015

All eyes will again be on the Fed in October when they announce on the 28th. While it is unlikely that they will take action in October, according to the survey from Bloomberg below, there are very good odds for December. So what does this mean for bonds and notes? Interest rates and treasury notes…

Feeder Bear Spread Still An Opportunity

September 26, 2015

The feeder cattle market has been reeling from the clear expansion taking place in the herd. The strong dollar and cheap meat alternatives have also fueled this epic decline. With yesterday’s limit up day, many traders are left wondering if they missed the opportunity get short. Technically the market is oversold. Data as of September…