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Chart Pattern Secrets

December 17, 2019

Next Alert: 12/19/19

The Trading System: Application of Trading Chart

Patterns with Futures and Option Contracts

Copyright © 1997 All rights reserved.

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10/22/19: The dollar is retracing recent gains and is headed to the 50% level.

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12/17/19: Stocks remain positive going into the end of the year with fresh new highs. Keep

watching for top formations.

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10/22/19: Gold may be headed for a 50% retracement. Keep watching for now.

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11/21/19: Silver prices fell below the 50% level but is trying to regain that level.

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12/03/19: The energy complex historically finds their winter lows in the Jan/Feb time frame which

leads to the spring into summer rally. We’ll keep watching for bottom formations. And we will be

switching to the July energy contracts within a few weeks.

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12/03/19: The energy complex historically finds their winter lows in the Jan/Feb time frame which

leads to the spring into summer rally. We’ll keep watching for bottom formations. And we will be

switching to the July energy contracts within a few weeks.

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12/03/19: The energy complex historically finds their winter lows in the Jan/Feb time frame which

leads to the spring into summer rally. We’ll keep watching for bottom formations. And we will be

switching to the July energy contracts within a few weeks.

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09/04/19: Harvest is underway and the attention turns to weather and the South American crops

which are way behind in planting due to dry weather. Plus, there is still uncertainty of the amount

of corn grown this year in the U.S.

10/03/19: I think it is a good idea to purchase a close to the money CALL option in March corn.

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10/03/19: Soybeans are starting to move up with prices above the 50% level. With uncertainty

with the U.S. crops and a slow planting process in South America, we think buying March

soybeans near the money CALL options is a good idea.

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12/17/19: BO benefitted from the news that the China trade war may soon be over at least for

commodities.

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10/21/19: LC prices are at last April highs and may be ready for a correction, keep watching for

top formations.

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10/08/19: CT prices have fallen off due to the trade war with China brining about lower demand.

However, I feel a trade deal will be reached after the theatrics end.

10/08/19: Prices seasonally rise from November into March cotton option expiration so

purchasing a near-the-money March CALL option gives us the opportunity to take advantage of

the seasonal price move and the China deal.

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12/17/19: Prices are moving above the 50% level which is positive for our trade. Stay with the

trade as long as prices remain above the 50% level.

09/26/19: There is a 1-2-3 bottom in sugar. There is a normal seasonal price rise that occurs in

October noted on the lower portion of the chart. This would be considered a short term trade that

may reach the 50% level.

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10/10/19: Cocoa has rallied to just above the 50% level and may be about to change the trend to

lower again. Seasonally, prices trade lower into option expiration in February so purchasing

March near-the-money PUT options seems like a good idea.

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06/04/19: Coffee has made a move higher but is now retracing, keep watching for now.

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Disclaimer and Disclosure of Risk Statement

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Trading commodity Futures and options on futures involves significant risk.

You must consult licensed professionals or your own advisors before trading to determine if it is

suitable for you.

Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. You

must consult your broker or advisor before making any trade to insure current prices, margin

requirements and other factors determinant to suitability. By reading this publication you agree to

make no trade relying in whole or in part on the comments of the writers. You agree before doing

any trade contained herein to consult your charts and advisors to verify all information and make

your own decision.

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.

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE

CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED

RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT

BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE

IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.

SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT

THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS

BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES

SIMILAR TO THOSE SHOWN.