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. All traders should understand that trading in the futures and or options markets is not for everyone. All traders should understand that there is substantial risk of loss when trading futures and or options. All traders should carefully evaluate whether trading in the futures and or options markets is appropriate for them, as such trading is speculative in nature. When trading futures, traders may sustain losses which may exceed their margin deposits. Option purchases may result in the entire loss of premiums paid for such options. Past performance is no guarantee of future success RSS Feeds  |  Risk Disclaimer  |  Privacy Policy  |  Advertise With Us!  |  Contribute to PitNews  |  Affiliates  |  Resources