1995 SPREAD INVESTMENT LETTER
JANUARY |
FEBRUARY |
| Back to the grains. Who could
turn down corn / wheat? The spread gained over $1,500 and dwarfed its margin requirement.
|
Time to ride another winner in
the grains - soybeans / wheat. The key was the break of the down trendline shown in the
February newsletter. As can be seen, once the trendline was broken, it was clear sailing.
The move was worth almost $2,000 in a little over a month, again dwarfing the margin
requirement. |
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| MARCH | APRIL |
Although it took awhile for this intramarket cotton spread to work, when it did finally move, the gain was worth almost $3,500 which compares quite well with the $400 margin requirement. |
For April, I went back to the
grains and tried a soybean / corn spread. As can be seen, it was basically flat. This type
chart is a "scale trader's" delight as contracts are repeatedly bought / sold
within the range. |
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| MAY | JUNE |
| Time to return to the
currencies where this Deutschmark / Japanese Yen spread produced approximately $29,000 in
five months from mid-April to mid-September. The return is in double-digit MULTIPLES (not
percentages) of the margin requirement. Several subscribers likely paid for many years of
service with this hot potato. |
An intermarket stock market
spread long S&P 500 / short NYSE is provided for the June letter which banks over $
13,500 in the next four months when it breaks out of its channel.
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| JULY | AUGUST |
| Since the previous year was
such a bummer in the energy complex, I gave-it-a-go again in the July letter. Although the
spread gained over $1,100 from mid-June to mid-November, the road was, again, a rough one.
A market such as this is perfect for the "scale-trader". |
For August, we return to the intramarket heating oil spreads and, eventually, produce a $1,200 winner which more than covers the $500 margin. |
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| SEPTEMBER | OCTOBER |
| Time to return to the meat
complex where we try a live cattle / live hog spread. The spread produces a quick $1,100
winner by early November but remains flat thereafter. |
Hard to pass up this heating oil / gasoline spread which returns almost $ 1,000 over a month and one-half. |
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NOVEMBER |
DECEMBER |
| Time for another MAJOR winner.
Let's reverse the bond / bill spread of last December. The ratio chart shows the result
which produces almost $13,000 over the next six months as bonds peak when the "budget
deal" falls apart. |
If it works for bills and bonds, why not try notes / bonds which we do just in time to pocket the $6,000 spring gain in the popular "NOB" spread. |
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