Yes, most definitely!
…along with all other financial Futures contracts. Seasonality occurs when there is a cyclical event that drives the supply/demand fundamentals consistently during certain times of the year. These events will occur with such high frequency they are called Seasonal Patterns.
With today’s computer technology, research companies can now review historical data and find these consistent recurring times of the year for each Futures market that is traded. The data is tested back for 15 years and in some cases 35 – 40 years. In the past traders would actually use a tool called a Cycle Finder that we would lay across Futures charts on paper and try to see if we could anticipate where the next market bottom or top might occur.
When talking about Seasonal patterns many traders think that only physical Commodities like the Agricultural, Metals, Energy or Softs can be cyclical. While these other markets are very cyclical in nature due to certain times of the year when supply or demand fundamentals (planting, harvesting, mining, driving or heating seasons, etc) create these consistent Seasonal patterns.
Moore Research Center Inc. (MRCI) www.mrci.com, is one of the research companies that does extensive research on these Seasonal patterns and makes them available to their subscribers. They are offering Online Trading Academy students a free two week trial subscription if you are interested in seeing if Seasonal analysis can help your trading. If you decide to subscribe MRCI is giving a 10% discount to all of our students. Contact Melissa Moore… Continue Reading
