Wheat Seasonality

Do the Planets Play a Role?

Seasonal Tendency for Wheat Prices

Search around the internet and you will find people promoting the concept of seasonality. The above chart of Wheat price is a typical example. Look at the left side of this chart. The suggestion is that Wheat prices will decline sharply every year in the month of March. Surely this must mean that here and now I should be planning to take a short position on Chicago Wheat futures once the month of March arrives?

Well….not exactly….

These seasonality charts are based on many years of price data. The above chart is based on 20 years of price data. Over the scope of 20 years, if several years posted strong declines during the month of March, those points would more than compensate for multiple years of modest or no significant price declines.

As a trader or investor, how do you use these seasonality charts and at the same time stay out of trouble?

The answer is to use some basic astrology.

The starting point for the application of this basic astrology is to look at the first trade horoscope. In the case of Wheat, we need to study the natal horoscope for Wheat futures which started trading on January 2, 1877.

The above horoscope wheel from Jan 2, 1877 shows the position of the planets. What is curiously interesting is how the Mid Heaven, Mercury, Pluto and Moon form a 4-sided parallellogram shape.

The above chart segment shows Wheat prices during 2005 and 2006. In 2005, Wheat price peaked on March 15. In 2006, price peaked on March 7. The amount of decline in 2005 was greater than in 2006.

The above chart segment shows Wheat prices during 2007 and into 2008. In 2007, Wheat price exhibited little or no price weakness in the March timeframe. In 2008, price peaked on March 12. Why the stark difference in two March periods? What is influencing the tendency for price declines in the month of March?

The answer can be found in astrology. Let’s dig deeper. Let’s see if we can figure out in advance whether a March timeframe in a particular year will deliver a significant decline in price.