Seasonal Patterns Coming Into Play

By Lawrence G. McMillan

The fall of the year is ripe with seasonal patterns not only for stocks, but also for Heating Oil and Gasoline.  While we did not trade the  October Bullish Seasonal pattern this year it was still modestly profitable.  Now we have to look forward to some others that are on the very near-term horizon.  These are not the ones related to Christmas and the new year – those are often more vague and less profitable to trade.

Rather, we are looking specifically at the post-Thanksgiving trade (whose entry point will occur just before we publish the next issue, so we wanted to get the recommendation into this issue), and also the Heating Oil-Gasoline futures spread that has had many profitable years in the past (although it lost money the last two years).

It should also be noted that these seasonal trades are distinct and separate from the highly successful system trades that we have made in recent weeks ($VIX “spike peak” buy signal, “modified Bollinger Band” buy signal, $VIX “spike peak” buy signal, $VIX/$VXV crossover buy signal, and the put-call ratio buy signals).  These are discussed in a separate article within this newsletter...

Read the full feature article (published 11/13/2015) by subscribing to The Option Strategist Newsletter.