Do end-of-year price extremes in futures indicate anything about price activity the following January? Pete, Tom and Tony examine historical data to uncover the answer.
Oftentimes, traders will look for "reversion plays" as the year comes to an end in an effort to capitalize on futures products that have experienced dramatic rallies or selloffs. doublerainbow examines /ES, /NQ, /CL, /NG, /ZC and /ZW over the years to determine how each has behaved in terms of price at year end/January of the following year.
Ultimately, history indicates there is no statistical significance of reversion or directional trend in these products! So how should this information influence trade entry and management? Tune in as Pete, Tom and Tony explain!