Hello Traders,

Time sure does tick a bit different in the commodities and futures world….

Some traders know time has passed quickly when it is time to change to the Sept. contract versus the June contract ( like we are doing with BONDS right now), others may notice it when they think “wow, monthly unemployment is next Friday, time sure flies…” and still other traders, perhaps professionals and money managers notice it when one month ends and another starts and it is time to share monthly results with their clients…..

Either way you look at it, hope June will be a great trading month!

Today I want to share a couple of market behaviors with you, I have noticed in the past.

The first is US Bonds trading behavior on the last trading day of the month on the last 15 minutes of the old pit session, i.e. 13:45 to 14:00 central time.

While I did not spend any time trying to predict the direction of the move, I seen it many times, the bonds will make a 10-15 ticks ( 15 tick in bonds = $500 per contract) move during the last 15 minutes as large traders position themselves ahead of months close.

Below is a 1 minute chart of Bonds from last month ( last trading day, April 30th)….notice the large move and range during the last 15 minutes ( over $750 per contract either for you or against you)….if you go back to the last trading day of the month, you will notice this pattern more often than not. Of course, I leave the important work to you…and that is which way and how can one try to take advantage of it….Main point is that you are now aware of this ahead of tomorrow which is the last trading day of the month for May 2015.

Custom USA – 30 yr US Treasury Bonds (Globex), Equalized Active 1 Min Continuation

The second pattern for you to investigate if interested is the behavior of crude oil futures during the last 10 minutes of , again, the old pit session which is 13:20 to 13:30 central time.

My back testing suggests there is better chances for this market to go up during these last 10-15 minutes but I would not use this as your only ingredient in the trading equation. I myself use it as follows: If my system was short and holds a short position, I would exit it at 11:20 pacific ( 13:20 central) and if my position was long I will hold it until 11:30 pacific/ 13:30 central. So while I don’t use my research to enter trades, I do use it to determine the time for my MOC ( market on close) of my trading system.

Here is a tick chart where I marked the last 13 minutes of the “old pit session” closing times. Notice how the last 10-15 minutes had as big as of a trading range as almost the whole trading day!!

CLE – Crude Light(Globex), Equalized Active Continuation:Range Bar, 18 Tick Units

GOOD TRADING