TRADETHINK ARTICLES

The Trends Are Back

August 5, 2009

By Chris Morse

Get ready traders; get off of the fences and the sidelines. It is time to participate in the commodities markets again. The trends are back, just look below at the charts to see some of the trades we have been catching. We all know (or should know) that the commodities markets consistently outperform the S&P and with less risk and volatility. However, typically it is the savvier of the investors that know how to capture the allures of the commodities markets. The uneducated and undisciplined will however perish, unless they can gain an edge and understanding of diversification and trend following.

In 2008 we had some of the best trending commodities markets in quite awhile. The nature of the markets is to consolidate after major moves like the ones we had to the downside in the latter half of 2008. In the beginning of 2009 we witnessed major market consolidation (as is usual after a big series of trends). After market consolidation and when most traders give up hope is precisely when the markets will start to roar again. Trading systems such as Trade Think are designed to take advantage of the markets trends and will assist both the savvy trader and the newbie looking to gain an edge in the markets. To receive a complimentary evaluation of Trade Think trading signals go here.

In order to make the best of the major trends that happen each year in the commodities markets it is essential to be properly positioned and diversified. One must use (or be open to using) an approach to the markets that leaves no stone unturned in order to be a participant in the major moves. To be involved in the big trade's one must be able to and willing to follow (not just one or two markets or sectors) multiple markets. It is of great importance to have an approach to the markets that can spot trends across; fuels, grains, metals, currencies, interest rates and softs. Fortunately there are a few tools available (even to the public) for spotting trends and minimizing risks while capitalizing on gains. One such tool is a trading system known in the industry as Trade Think. Just look at the charts below and see where you could be catching the trends.

Currently Trade Think MT is shown to be long (bought) the Copper futures contract. The Trade Think MT trading system signaled to go long (buy) Copper on 7/15/2009 at 236.90. Please see the chart below:

As you can see Think MT went long (bought) Copper and is currently long with an open profit of $9,237.50 per contract.

Currently Trade Think MT is also shown to be short (sold) the Dollar Index futures contract. The Trade Think MT trading system signaled to go short (sold) Dollar Index on 7/15/2009 at 79.57. Please see the chart below:

As you can see Think MT went short (sold) and is currently short with an open profit of $1,820 per contract. Go here to receive complimentary trade signals for the dollar index.

Currently Trade Think MT is shown to be long (bought) the Euro Currency futures contract. The Trade Think MT trading system signaled to go long (buy) Euro Currency on 5/20/2009 at 137.06. Please see the chart below:

Think MT went long (bought) Euro Currency and is currently long with an open profit of $8,787.50 per contract.

Currently Trade Think MT is shown to be long (bought) the Sugar futures contract. The Trade Think MT trading system signaled to go long (buy) Sugar on 6/24/2009 at 17.00. Please see the chart below:

Think MT went long (bought) Sugar and is currently long with an open profit of $2,396.80 per contract. Go here to get complimentary trade signals of markets like sugar.

Recently Trade Think MT went long (bought) the Soybeans futures contract. The Trade Think MT trading system signaled to go long (buy) Soybeans on 5/1/2009 at 892. Please see the chart below:

Think MT was long (bought) Soybeans and exited at 1036.5 on 6/15/2009 for a profit of $7,225 per contract.

Recently Trade Think MT went short (sold) the Corn futures contract. The Trade Think MT trading system signaled to go short Corn on 6/17/2009 at 424. Please see the chart below:

Think MT was short (sold) Corn and exited (covered) at 337.5 on 7/24/2009 for a profit of $4,325 per contract.

The above trades show the true power of diversification and consist of markets spanning nearly every major market sector. In fact, if you add up the current totals on just these trades the sum is over $30,000 as of this writing, on a $60,000 account that would be a 50% return. All trades were generated using the exact same trading algorithm from Trade Think. It definitely looks like the trends are back.

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.