Here’s some food for thought as you plan your next big trade.
Traders often use “seasonal analysis” because some patterns repeat quarterly or yearly.
- Companies announce earnings at the same time each quarter.
- Trade shows and research conferences occur at the same time every year.
- And even corporate events are pretty reliable occurrences on the calendar.
But while many traders rely on this data for stocks, these patterns were first identified in commodity, and some commodities cycles are easier to use for bigger profits.
Take crude oil. You’d think the commodity is needed every day in equal measure, but there are periods of the year when demand spikes make us see surges in energy costs…
- Christmas.
- Spring break.
- Thanksgiving.
- Peak summer driving season.
These are among the few times of the year we see energy demand surges.
Colder than normal winters are also likely to cause a surge in energy prices.
It doesn’t matter if your home is heated by oil, natural gas, or propane — a brutal cold winter will consume more energy. In other words, we know there’s daily demand…
But when these surges occur, there are big opportunities you and I can profit from.
Right now, Goldman Sachs’ new oil price forecast ($107 per barrel) has created more profitable setups to make some easy money, and as I said in yesterday’s email, you don’t need to take unnecessary risks to capture the best gains from this oil price surge.
See ten examples of how we use oil prices to grow our wealth.