London, United Kingdom (PressExposure) August 22, 2009 -- "We are looking for some moves higher in the soft commodity markets," said Phil Seaton Head of research and systems development at LS Trader. â At LS Trader we donât focus on fundamental news as we simply follow price trends, but we are already seeing some moves in certain commodities such Sugar and Coffee which suggest that the supply and demand on certain commodities is going out of balance, possibly due to the expectation of crop damage due to El NiÃ±o.â
When this happens and demand outweighs supply considerably then there can be some explosive price moves and prolonged trends. Mechanical trend following systems will automatically identify these price breakouts and generate buy signals. These breakouts often happen in advance of any news events and enable traders to get in on the move well ahead of other market participants.
âIâm not a believer at all in buying commodities based on a prediction that this tropical event known as El NiÃ±o is going to come as there is no way of knowing when it will come, how long it will last, how much damage it will do or which commodities it will affect. What I do know is that if and when something like this does happen that it will be reflected in the price and the markets will go up considerably.â said Phil Seaton.
The key aspect of trend following is that the price always reflects the sum total knowledge of all market participants regarding a particular market. This takes in to account all the things such as supply and demand and tropical events etc. There is therefore no need to try to predict market moves but simply let the market tell you when it is going to move by following the all important price.
For more information about LS Trader and their trend following betting system please visit: http://www.lstrader.co.uk