Recent content by Kato

  1. K

    Kato Spreads 'em

    Hi Guys, Kato here In this current economic wasteland I thought I'd conduct a bit of an experiment... Will it be possible for an average time-starved investor to earn outstanding returns from an alternative approach (in the commodity futures markets)? The Rules are simple: the strategy has...
  2. K

    Current Spreads January

    No question GT, just a review of some old analysis :D Regards Kato
  3. K

    Current Spreads January

    Hi Guys, I noticed the resistance levels at 5 & 10 came into play on this MW spread we discussed back in Jan, I find these potential resistance levels to be critical in selecting trades, are you still trading the spreads FN & Jxtn ?
  4. K

    Seasonal Spread Trading Forum

    Hi Herm4n here is a useful resource for spread margins: www.lfgfutures.com/backtool/margins.htm I would still check with your broker for current requirements as they can vary. I think you have the right Idea about your strategy for trade entries, use MRCI research for highlighting potential...
  5. K

    Current Spreads January

    mw n6 - mw u6 Hi FN I've posted a reply to your question in the December thread here just to keep things current. MW N6 - MW U6 Looks like a potential trade to me. I like the convergence of the 5 & 15 yr historical patterns which show a downtrend from late Dec into early April, the monthly...
  6. K

    Current Spreads Journal

    Hi FN I went through exactly the same confusion as yourself until someone showed me that the 15 year pattern you see plotted against the current price should be thought of as an image superimposed against the current price line to gauge how well the historical pattern is correlating, the image...
  7. K

    Current Spreads Journal

    OK here goes, just my own opinions, hope it comes across as constructive commentary and not critical of your trade ideas ( I worked on long april/short august, hope this was the trade you were looking at, you mention April/June later in your post): LH M6 - LH Z6 shows a strong historical move...
  8. K

    Current Spreads Journal

    Hi Guys LC M6 - LC Q6: Jxn- I like the look of this too, I'm waiting for a breakout and close above the channel but your 1-2-3 low and close above resistance around 1.0 to 1.15 look good to me. LC J6 - FC J6: with you on this one GT, I would like to see the downtrend line broken here before...
  9. K

    Current Spreads Journal

    Lc J6 - Fc J6 If you entered long one LC contract and short one FC contract you will be trading the strategy presented by MRCI. I would let MRCI worry about balacing the volatility between the contracts and just rely on them having found a high probabilty seasonal move trading the even...
  10. K

    Current Spreads Journal

    Lc J6 - Fc J6 Hi Fastnet MRCI show this trade (strategy number 2579) as an equity spread i.e. (LC current price x $400) - (FC current price x $500) so to trade the chart they show you would enter an equal number of contracts on each side. Hope this helps & all the best for the new year...
  11. K

    Current Spreads Journal

    Hi Fastnet I take your point regarding traditional TA, I do think that horizontal support/resistance levels do have a part to play in trade selection however. I believe a pronounced support level on a monthly spread chart, especially intramarket commodities, represents a physical limit to the...
  12. K

    Current Spreads Journal

    What caught my eye on the LC V5 - LC Z5 chart was the relatively accurate correlation of this spread's behaviour to it's 15 year historical pattern and it's upside potential for the seasonal reversal mid June. I totally agree with what you highlight from the monthly chart, it's currently...
  13. K

    Current Spreads Journal

    Hi fastnet I'm in a similar position to yourself; waiting for a decent set-up for my first spreads trade. I also have been following Jul05 Lean Hogs - Aug05 Lean Hogs waiting for a breakout, we have the quarterly hogs & pigs report due out on Friday (2pm CDT) which might shake things up a bit...
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