commodity futures spreads watchlist commodities crude oil clg17 clf17 live cattle lej17 leg17 lean hogs hez16 heg17 corn zcz16 zck17 november 2016

Futures Spreads Watchlist: November 2016

Date of analysis: October 23, 2016

List of seasonal futures spreads I consider to trade in November.

In October I had 2 potential trades in my watch list but the spread did not follow the seasonality so, no trades executed.

 

Buy Crude Oil: CLG17 – CLF17

long February 2017 Crude Oil and short January 2017 Crude Oil.

Optimized entry date is November 1st, but significant move on October 21st may indicate, that seasonality just started. The correlation between spread and seasonal patterns within last 15 years is stable and in last 15 years there were 100% winning trades.

(click on image to enlarge in new window)watchlist commodity seasonal futures spread trade crude oil clg17 clf17

 

Buy Live Cattle: LEJ17 – LEG17

long April 2017 Live Cattle and short February 2017 Live Cattle.

Trading window is almost two months and finish after Christmas. If I will enter into trade I will try to close the position before holidays. Another spread combination LEM17 – LEG17 is on my radar with optimized entry date at the end of November.

(click on image to enlarge in new window)watchlist commodity seasonal futures spread trade live cattle lej17 leg17

 

Buy Lean Hogs: HEZ16 – HEG17

long December 2016 Lean Hogs and short February 2016 Lean Hogs

Hence there are 28 days to optimized entry date I will provide analysis again in the middle of November. Currently, the seasonal statistics and back tests passed my analysis with good results.

(click on image to enlarge in new window)watchlist commodity seasonal futures spread trade lean hogs hez16 heg17

 

Buy Corn: ZCZ16 – ZCK17

long December 2016 Corn and short May 2017 Corn

This one is less favorite. Historically average profits are small around 50 USD – 115 USD, it just covers the fees. Right now the market is choppy.

(click on image to enlarge in new window)watchlist commodity seasonal futures spread trade corn zcz16 zck17

Please read the disclaimer.

 

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