Yet another year of Greg Placsintar Asset Management trading has finished. Unfortunately, the last month of the year was negative for the Seasonal Spread and Option Strategy (Dec 2016, –1.46%) because of the deviation in the Live Cattle Feb Apr spread. However, we still managed to end yet another year with positive returns. This is the 8th positive year in a row for our Seasonal Spread and Option Strategy (PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS).
The above presentation is for informational and comparative purposes only. It is intended only for use by those who are knowledgeable about such comparisons. The index or indices selected to generate the above comparison is/are not available as directly investible product(s). Generally, no individual can purchase an actual index as an investment holding for his or her portfolio. All index comparisons should be considered with the intent to evaluate differences between a singular trading strategy against a designated benchmark.
We expect 2017 to be a year with a lot of opportunities for seasonal spreads. We see good opportunities right now in the Eurodollar Forward Curve, if the FED raise rates, and we will enter into a new era of rising rates. This favors some of our spread strategies as we already have started with several positions in the ball of the curve, and we are planning to add more in a few months.
At the same time, in the energy futures market, we see opportunity with the high reserves of crude oil which is causing the forward curve to be in contango. We will place more and more orders in the following months but of course we are looking to close the evolution of the forward curve and the reserves to see if it will change in the future causing the curve to move to backwardation.
In the meat future market we still see a lot of volatility, the volatility means opportunity so we will monitor this market closely.
In grains, as in other markets we start setting our first positions. We already have small positions in Soy Bean Meal, Soy Beans and Corn. These strategies will benefit if unexpected events occur before the planting season. At the same time we hold several positions in Soy Bean Oil with a carry spread with hopes of benefiting from the plentiful reserves of this commodity.
As always we focus on the risk to reward of our positions. We work to keep the volatility of the portfolio low but at the same time to be able to make significant profit.
If you have any question as always please do not hesitate to contact us.
Thank you for your trust.
As always if you have any question please do not hesitate to contact us.
Thank you for your interest and continued trust.
— Gregory Placsintar
— Miguel Sanz Castello
THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.