Spread Chart of the Week
by Steven A. Mitchell
Date: 02/11/10
Estimated Update: 02/18/10
Company:
VTUniversity.com
Phone:
800.462.4691
Website:
VTUniversity.com
Soybeans
The reliable seasonal tendency for this July Soybean/Bean Meal spread got started about one week
early, as it often happens. The good news is that the seasonal tendency lasts until the very end of
April. Therefore, traders may want to plot an entry that permits boarding the moving freight train in
the direction of the emerging trend. Care must be taken in order to avoid the potential for significant
draw downs; and awaiting a return of the stochastic oscillator to oversold territory may be prudent.
The margin on this volatile spread is over $2,000.
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