Stocks & Commodities V. 37:09 (20–23): A Simple Way To Trade Seasonality by Perry J. Kaufman

A Simple Way To Trade Seasonality by Perry J. Kaufman

You can locate patterns to perform seasonal trades—although they won’t necessarily be where you expect. Here’s a way to uncover consistent patterns you can use to trade, not just on futures but also on some seasonal stocks.

I have always liked seasonal trades. I like trades that are based on something real, rather than patterns uncovered by a computer search. Corn is planted in the spring and harvested in the fall. At the beginning of the season there is uncertainty about the size of the crop. In the middle of the year there are concerns about drought and disease. And at harvest there is always more corn than we know what to do with. We can count on that just as we can count on the way the earth spins ...