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Kansas City vs Chicago Wheat Spread Alive and Kicking

By November 23, 2020 Blog

Published by: Peter Karaverdian

11/22/2020

Hello Traders Around The World!  I hope all is well to you in these times.  Let’s get into it!  One of the best things we have no matter what the world throws at us, is the opportunity to sit down almost anywhere in the world and simply using our experience, knowledge, and technology  provided to us by our providers, sit down and put on a good trade.  Whether it is swing trading a futures spread, or catching the bottom of an intraday profile and riding it back up on the ES, NQ or DAX.

Kansas City vs. Chicago Wheat Futures Spread has been a popular and winning trade for large funds, speculators, producers and US, the small traders.

On our 1 Hour Fortes Edge Charts we triggered a clear long signal from the -63’s.

 

Our 4 Hour Anchor Chart has confirmed this to us and also has shown some signs of weakness or a pullback.  Since October 29th this spread at $50 per point and less then about $1200 in margin to hold one spread is currently at the price of -42.6, Roughly a total Unrealized profit of 19 points or $950 per spread.  Total Risk more or less if this trade reversed at the original entry would have been 3-4 points tops.  So far a great trade!

 

 

My trade recommendation now is for current profit holders to consider profit taking if price hits under -49’s, long if it continues.

Until what target?  Good thing you asked.  In a spread, the trend continues until it doesn’t.  being predictive these days for fundamental reasons or otherwise can be suicidal.  Best thing to do is follow a system and let it decide for you when to get in and out.  In a series of trades, one will know over time that this idea on the proper markets and timeframes works itself out.  The losses keep themselves in check and the winners are not quickly removed at the site of a green profit.

Here at Fortetrader we use our Bread and Butter Spreadem© Technical Strategies to trade what we see and not what we think.  If you are not already on our list, feel free to subscribe and find out more on how we get an edge and a piece of these markets in the futures and commodities space.

Also for those that have not already done so, Watch a Free Prerecorded Webinar on the advantages of trading Futures and Commodities Spreads. CLICK HERE

 

Until next time, trade well out there.

#spreadem

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