Monday, July 29, 2013

New Trades

Lean Hogs

Hogs have been moving steadily higher over recent months in what's been a standard seasonal move.

Grain prices have been high and that's also been a factor however I think we're reaching a bit of a top.

This looks a nice seasonal pattern with a solid window. This one's been a winner 14 of 15 years and I think we can risk $1000 per contract or 100 ticks (2.5 points)

This isn't a common one but I like the seasonality combined with the correlation with economic factors and especially China.

China is a large importer of copper and recently we've certainly seen s slowing down with their economic data.

We can risk $400 per contract or 32 ticks according to the historical data but I'd like to see the stop slightly above the most recent high. That puts it at 0.7 on the chart below or $875. This one's been a winner 14 out of 15 years.

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