TRADETHINK ARTICLES : Will We Get Some Summer Trends

July 1, 2009

Will We Get Some Summer Trends

By Chris Morse

In the financial markets the summer can often mean for some dull and choppy trading. However, this year might be different. Usually the summer trading can slow down because many of the market participants step over to the sidelines and take time off to vacation and spend with loved ones. With the economy downturn since the end of last summer, I am thinking there is a possibility that not as many of the market players will have the luxury of taking the entire summer off this year. Instead the traders will be looking for trading opportunities.

This year we have already had a few pre-summer moves in the commodities markets. Usually the big moves don't start to happen until around September of each year and run through December. Being that we have started to have some early market movement and the general state of the global economy with potential inflation, it could truly be a good time this summer to start looking for some trades. For commodities we have several market sectors that we follow simultaneously. We want to watch for potential trends in the following sectors; fuels, metals, grains, bonds, currencies, meats and softs.

The importance of following multiple market sectors cannot be over emphasized. Market moves can and do come out of many places. By positioning ourselves smartly with a diversified portfolio approach we can be rewarded with some good moves and big profits. Of course, there is always a risk of getting into choppy markets and taking losses. However, when we take a disciplined trading approach to the markets using diversification and trade management we are positioning ourselves to take whatever the market will give us.

Currently TradeThink Pro is shown to be long (bought) the British Pound futures contract. TradeThink Pro signaled to go long (buy) BP on 5/19/2009 at 1.5347. Please see the chart below:

 

As you can see TradeThink Pro went long (bought) BP and is currently long with an open profit of $7,656 per contract.

Currently TradeThink Pro is shown to be long (bought) the Brent Crude Oil futures contract. TradeThink Pro signaled to go long (buy) Brent on 5/27/2009 at 62.17. Please see the chart below:

As you can see TradeThink Pro went long (bought) Brent and is currently long with an open profit of $8,820 per contract. Go here to receive complimentary trade signals for Crude Oil.

Currently TradeThink Pro is shown to be short (sold) the Corn futures contract. TradeThink Pro signaled to go short (sell) Corn on 6/17/2009 at 424. Please see the chart below:

As you can see TradeThink Pro went short (sold) Corn and is currently short with an open profit of $1,337 per contract.

Currently TradeThink Pro is shown to be long (bought) the Sugar futures contract. TradeThink Pro signaled to go long (buy) Sugar on 6/23/2009 at 16.98. Please see the chart below:

As you can see TradeThink Pro went long (bought) Sugar and is currently long with an open profit of $1,030per contract.

Currently TradeThink Pro is shown to be short (sold) the Lean Hogs futures contract. TradeThink Pro signaled to go short (sell) Hogs on 6/26/2009 at 57.63. Please see the chart below:

As you can see TradeThink Pro went short (sold) hogs and is currently short with an open loss of $400 per contract. But, look at the trade just prior where Think Pro signaled to go short on 4/27/2009 at 71.23 and had an exit on 6/19/2009 at 61.69 for a profit of $3,766 per contract.

As you can see TradeThink Pro went long (bought) Silver and is still long with an open profit of $10,300 per contract.

As you can see TradeThink Pro was long (bought) Silver and recently closed (sold to exit) the trade at 114.10 for a profit of $4,150 per contract.

TradeThink Pro recently went short (sold) the US Thirty Year Bond futures contract. TradeThink Pro signaled to go short (sell) US on 4/29/2009 at 122.06. Please see the chart below:

As you can see TradeThink Pro was short (sold) US and recently closed (buy to cover) the trade at 117.13 for a profit of $4,880 per contract.

From the charts above you can see a combined profit of $27,473. We chose a market from each sector that TradeThink follows using the exact same trading strategy (no curve-fitting or optimization). The markets above include; Currency (British Pound), Fuel (Brent Crude Oil), Grain (Corn), Soft (Sugar), Meat (Lean Hogs), Metal (Silver), Financial (30 Year Bond).

About the Author

Chris Morse is the Developer of the TradeThink trading system. He has been involved in the development of trading strategies for nearly ten years. Mr. Morse developed a very robust system which is now in private use at one of the largest FCM's and has earned sizable returns for the last 3 years. Mr. Morse now focuses his time exclusively on developing and managing his systems.

Disclosure: Commodity trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to buy/sell commodity interests.

Notice: Returns are hypothetical. Hypothetical or simulated performance returns have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since trades have not actually been executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight, no representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. INVESTMENTS IN FUTURES INVOLVES HIGH RISKS AND YOU CAN LOSE A LOT OF MONEY.

FUTURES TRADING HAS LARGE RISKS. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES MARKETS. DON'T TRADE WITH MONEY YOU CAN'T AFFORD TO LOSE. YOU SHOULD CAREFULLY CONSIDER WHETHER YOUR FINANCIAL CONDITION PERMITS YOU TO PARTICIPATE IN THE FUTURES INDUSTRY. IN SO DOING, YOU SHOULD BE AWARE THAT TRADING FUTURES AND OPTIONS ON FUTURES CAN QUICKLY LEAD TO LARGE LOSSES AS WELL AS GAINS. SUCH TRADING LOSSES CAN SHARPLY REDUCE THE VALUE OF YOUR ACCOUNT. THIS IS NEITHER A SOLICITATION NOR AN OFFER TO BUY OR SELL FUTURES INTERESTS.

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ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

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