| FEB 2008
Explore Your Options by Tom Gentile
Explore Your Options by Tom Gentile SEASONALITY I know seasonality is an important factor in the commodities markets. Is there any way to play seasonality in the stock market? Can you give an example? Important seasonal patterns exist, not just in the commodities market, but in the stock market as well. One seasonal trend that you might have seen in the commodities market is natural gas. Prices move higher before the winter because colder weather creates an increase in demand for the commodity. As temperatures drop, consumers need more heat and also more natural gas. In the stock market, there are seasonal patterns related to the weather and other events. For example, stock of natural gas companies like Williams Cos. (WMB) reacts to changes in natural gas prices. So there is sometimes a seasonal pattern in WMB and other commodity- related stocks, which is tied to the price moves of the commodity.
by Tom Gentile
Technical Analysis of STOCKS & COMMODITIES
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