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Entering a commodity futures market correctly keeps the risk of loss to a minimum when wrong. Exiting a market correctly gives you the maximum profit when right. If we can keep the times we are wrong to small losses, we have won half the battle. Here's a classic entry method tha

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

t can be applied across all time frames.

A very smart and famous commodity futures trader once said you can make a living just selling double and triple tops or buying double and triple bottoms. I would agree with him. I’d like to show you a commodity trading technique that tak

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

s this idea a step further for better confirmation.

Take a look at this S&P 500 stock index futures weekly chart by going to the link at the bottom of this page.

You will see a big bear market bottom in the middle of the chart followed by a big triple bottom a

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

d then a big rally up. Most bear markets don’t end with a sudden single spike and then start going straight up. Instead, they make a series of bottoms at or near the same level. This is where the big commodity futures traders start accumulating their lines. The BUCKS method atte

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

pts to label this triple bottom and give it a structured pattern for you to use.

It’s a mistake to expect the same pattern scenario every time. Any commodity futures market will make a different style top or bottom each time to fool the majority. It’s the Elliott rule of altern

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

tion at work. The pattern alternates even though the general results are the same. I like to label this pattern with the five letters from the word, “B-U-C-K-S”. We use this acronym because this formation can often signal a high probability trade generating substantial bucks - i

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

it works out. Many experienced commodity futures traders have their own version and name for it.

The B-U-C-K-S method can be used for any time frame. It obeys the rules of fractals, meaning it appears in big or small time frames, from one minute to weekly commodity futures cha

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

rts. In fact, if we took the time scale off this chart, you could not tell if the BUCKS formation was from a one-minute or monthly bar chart.

Take a look again at the chart. The “B” label is the panic spike. Look for the panic clean-out where the last long holders throw in the

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

owel to sell. The “U” is the first rally. It usually has some good buying but is often just a sharp short-covering rally. The “C” is the sharp decline that sometimes takes out the previous low, but quickly recovers in a wide range. A classic key reversal may occur here along wit

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

some serious quality buying. The “K” marks the first good rally that will often take out the previous “U” rally high. Then comes the “S” decline.

The “S” move is very critical to watch. The ideal futures price action is to see an anemic decline to support onto the previous hig

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

s of the “U” rally. This is a good indication that the selling has dried up and the market has finally tipped its hand for a big bull market to come. Buy into this “S” dip with confidence. Pick up your position into whatever weakness you can get. You might even average down a li

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

tle. If the futures market keeps declining and takes out the lowest low from the previous B or C declines, then look to liquidate your position on a small rally back to these old lows. This should keep the loss reasonable.

However, if things work out, look for an explosive move

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

up that will often carry the futures market a long way. Then use a cycles forecast to estimate the time frame of this bull move. If the market cooperates and produces clean swings, you can also start hedging the rallies to help hold on for the big swing. Having a flexible but st

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

uctured plan like this is important to your success. You need to identify the market’s current pattern and use the right tools.

The B-U-C-K-S Method can be used with commodity futures TOPS too. Simply reverse the description above. Generally, commodity tops can be much more vol

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

atile than bottoms, so you usually need to give the market more leeway when using stops.

The overall idea here is to identify low risk opportunities and let the market come to you. Sometimes the formation will skip the "K" or "S" swings making a double bottom instead of a tripl

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

. Stay flexible and have no rigid scenarios. By making the market prove itself first through a series of tests and bottoms, you are stalking your commodity trades like a professional.

If you look back over futures chart history, you will find that to support a major move of any

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

time frame often requires a B-U-C-K-S formation that has at LEAST as much time invested as the duration of the next move. On a weekly chart like this, a B-U-C-K-S formation can sometimes forecast a multi-year move. This method can be the foundation for any commodity futures trad

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ng campaign.

To summarize the pattern: Look for the final panic drop, the fast short covering rally, the second bottom decline test, the next rally and then the the last anemic, labored correction into a third higher bottom. The structure is never exactly the same each time, bu

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

the general concept is what's important. This method can be applied to any time frame and any type of market, commodities or stocks.

Here's the S&P 500 weekly chart used for the B-U-C-K-S reference:

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

od-883352.htm" target="_blank">http://www.thomascapitalmanagement.com/course2/27-TheThomasBUCKSMethod-883352.htm

Good Trading!

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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