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STOCKS AND BONDS
S&P’s are prone to year-end buying pressure. Our best seasonal percentage
play, which is long the March futures contract from October 27, exits on any
strength from the “Santa Claus” rally by December 27 (page 96). 30-year
Treasury bond prices are seasonally weak, as we are in a short June futures
contract from November 18 and holding through April 25 (page 106).
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ENERGY
Cover the short crude oil seasonal best trade from September on or about
December 9 (page 80). Natural gas tends to see price declines, especially if
inventories have not been worked off due to warmer than expected weather
conditions (page 147).
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METALS
Liquidate the long gold position from November on or about December 2
(page 104). Also, exit any complementary long silver positions that may
have been established along side the November gold trade. Copper builds a
solid base towards the middle to the end of the month. Go long May copper
futures on or about December 14 and hold through on or about February 23
(page 112). The low in 2008 was made on December 26, and then prices
made a remarkable rally into the first half of 2009. The trade worked even
better in 2009–2010.
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GRAINS
The end-of-year marketing for soybeans is winding down, and farmers are
reluctant to sell in front of end-of-year tax liabilities (page 161). December
can see modest declines in the wheat market, which continues its seasonal
downtrend (page ...