Seasionality In Corn
August 18th 2008 16:09
The Traders Blog has an interesting post about seasonality and Gann.
Markets a have different characteristics and it's important, before you trade that you get as many things on your side as possible. That means study. Study the market you want to invest in.
Click image to enlarge
2008 was no exception, in a BIG way. The low for March was $5.07 and the high was $5.70. Trading was sideways for the month. In April trading broke out and by June Corn hit $7.60. That's a spectacular gain of 50% in three months! (See Chart)
Here's something else, I noticed from the Trader's Blog chart of corn. That chart shows 20years of Corn trading between $1.50 and $4.00, from 1972 to 1992. If you look at a monthly chart of corn (See Chart), you'll notice that Corn continued to trade in that range for another 15 years. Then in 2007 Corn broke through $4.00, traded up to $4.37, pulled back to $3.10 and then more than doubled to $7.62! When age old resistance levels are broken, take notice!
Now Corn has dropped over 36% since June. I think I will start using MarketClub's Triangle Trading System to tell me when to enter the market.
BTW, Mover Mike outlines some freebies from MarketClub
Markets a have different characteristics and it's important, before you trade that you get as many things on your side as possible. That means study. Study the market you want to invest in.
To illustrate, a study of the monthly corn chart reveals March is a poor month in which to initiate a major short position.
2008 was no exception, in a BIG way. The low for March was $5.07 and the high was $5.70. Trading was sideways for the month. In April trading broke out and by June Corn hit $7.60. That's a spectacular gain of 50% in three months! (See Chart)
Here's something else, I noticed from the Trader's Blog chart of corn. That chart shows 20years of Corn trading between $1.50 and $4.00, from 1972 to 1992. If you look at a monthly chart of corn (See Chart), you'll notice that Corn continued to trade in that range for another 15 years. Then in 2007 Corn broke through $4.00, traded up to $4.37, pulled back to $3.10 and then more than doubled to $7.62! When age old resistance levels are broken, take notice!
Now Corn has dropped over 36% since June. I think I will start using MarketClub's Triangle Trading System to tell me when to enter the market.
BTW, Mover Mike outlines some freebies from MarketClub
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