Commodity Spreads to Watch in May 2016

Date of analysis: May 1, 2016
The list of seasonal futures spreads I consider to trade in May. I have some more in my watch list which are less favorite and I do not mention them here. All of them are intra-commodity.

 

Spreads removed from April 2016 watch list

  • Soybean Meal ZMU16 – ZMZ16: successfully traded with profit of 620 USD with 2 contracts, more details here.
  • Gas Oil GOX16 – GOU16
  • Soybeans ZSN16 – ZSH17: there was a signal for trading, but I did not take it, because I was already in Soybean Meal.

 

Buy Lean Hogs: HEZ16 – HEN16

long July 2016 Lean Hogs and short December 2016 Lean Hogs

14 days to optimized entry, there is room for price decline before seasonality starts.

(click on image to enlarge)watchlist futures seasonal spread hez16 hen16 lean hogs

 

Buy Crude Oil: CLU16 – CLQ16

long September 2016 Crude Oil and short August 2016 Crude Oil

19 days to optimized entry, I’ll be observing and be prepared for trade. Seasonality might start sooner.

(click on image to enlarge)watchlist futures seasonal spread clu16 clq16 crude oil

 

Buy Corn: ZCH17 – ZCZ16

long March 2017 Corn and short December 2016 Corn

Re-optimized trading window (May 19 – Jun 22). Last month there were some fundamentals which affected the price. Corn remains in my watch list and I am waiting if seasonality starts.

(click on image to enlarge)watchlist futures seasonal spread zch17 zcz16 corn

 

Buy Heating Oil: HOF17 – HOZ16

long January 2017 Heating Oil and Jul 2016 Heating Oil

5 days after optimized entry date, the entry signal did not occur yet. Price is little bit high. I am watching similar spreads HOF17 – HON16 and HOV16 – HON16 as well.

(click on image to enlarge)watchlist futures seasonal spread hof17 hoz16 heating oil

 

Buy Gas Oil: GOZ16 – GOM16

long December 2016 Gas Oil and short Jun 2016 Gas Oil

Computer optimized entry is May 2. Price is little bit high, backtest results are not very convincing. I will consider to enter if the signal occurs. Similar GOF16 – GOM16 on my radar.

(click on image to enlarge)watchlist futures seasonal spread goz16 gom16 gas oil

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