Copper is higher today while stock, bond and most commodity prices are sharply lower. A quick look at what is going on. Last week copper rallied 2.2%, it had been a leader in the risk on movement for commodities and is a key for the bigger picture here. The Bloomberg commodity index fell 2.0% and is down 5.6% YTD last week. Enjoy live commentary from Our Trading Room at YouTube – feel free to like and share Live on YouTube … Continue reading “Copper Prices Rising While Markets Slide, Why?”
Oil and Gasoline Outlook In a Mad, Mad World
Oil prices have been volatile for quite a while now. WTI futures fell -4.24% on the week, Brent fell -3.95%, gasoline fell -3.98% and heating oil fell -5.32%. On the anniversary of Russia’s invasion of Ukraine we take a look at oil at what is going on and influencing it. Oil prices continue to trade back and forth between geopolitical risks and massive builds from low refinery usage due to maintenance. Futures have been ignoring large US builds and have … Continue reading “Oil and Gasoline Outlook In a Mad, Mad World”
S&P Futures Sell off on Rates and Geopolitics – where to now?
We look at the S&P 500 as it continues its slide after last week finished pressuring asset prices, fear levels rose and confusion reigns. Both market participants and Central Bankers are acting belligerent in where they think prices should be. Bottom line is we getting robust signals from the economy about a year-and-a-half into upward pressure on market-based borrowing costs, why? Enjoy live commentary from Our Trading Room at YouTube – feel free to like and share Live on YouTube … Continue reading “S&P Futures Sell off on Rates and Geopolitics – where to now?”
Natural Gas Collapse Continues, Where Does it End?
Two things are certain, Natural Gas tears faces off punters and dribblers, Natural Gas futures never does what is expected. Natural gas futures fell Monday another 8%, Last week it fell -9.94%, down -27.22% for the month and -48.27% year on year reflecting a combination of an oversupplied market and TTF futures in Europe touching €49.5 a megawatt-hour on Friday. We discuss what is going on and the outlook. Enjoy live commentary from Our Trading Room at YouTube – feel … Continue reading “Natural Gas Collapse Continues, Where Does it End?”
Five Factors in a Constructive Strategy for Investing in Commodities
Investing in commodities is something that needs to be done within a constructive strategy to understands risks and opportunity. There are many factors to consider individually depending on one’s access, location and financial position. Five factors to consider are monitoring the market, monitoring supply and demand dynamics, diversification, long-term focus and dollar cost averaging. Constructive Strategy Investing in Commodities Could Include: 1. Monitoring the market: Stay up to date on the latest market developments and adjust your investment strategy as … Continue reading “Five Factors in a Constructive Strategy for Investing in Commodities”
How Fibonacci Analysis Can Help Improve Your Trading
Fibonacci analysis is a powerful tool that can help traders identify potential support and resistance levels in the market. By studying the relationships between Fibonacci retracements, Fibonacci extensions, and Fibonacci time zones, traders can gain valuable insight into the possible direction of the market. Fibonacci analysis can also be used to identify potential entry and exit points and identify trends in the market. This type of analysis can be used by traders to improve their trading performance and develop a … Continue reading “How Fibonacci Analysis Can Help Improve Your Trading”
Santa Clause Stock Market Rally and Window Dressing
Talking heads and brokers love to spout off about the Santa Claus rally at the end of each year. The Santa Claus rally is a term used to describe a phenomenon in which stock prices tend to rise in the last five days of the year, as well as the first two trading days of the new year. It was first defined in ‘The 1972 Stock Trader’s Almanac’ by Yale Hirsch. It is believed that this phenomenon is caused by … Continue reading “Santa Clause Stock Market Rally and Window Dressing”
Markets Reverse Sharply on Feds Powell Statements, What Does it all Mean?
Thirty minutes in financial markets is a long time. Markets were relieved after the Federal Reserve again raised rates by 75 bp at their November meeting. Then Chairman Powell started talking and it all collapsed. The Nasdaq went from +25.45 at 10856.15 to negative to close -366.05 points at -3.36% at 10464.65. The 10-yr note yield fell to 3.98% but jumped to 4.11% after the close of the cash session. Traders had reacted initially to the tone of possible rate hikes slowing … Continue reading “Markets Reverse Sharply on Feds Powell Statements, What Does it all Mean?”
Using The Market Dislocation Index to Enhance Portfolio Risk Adjusted Returns
We have seen the dislocation of financial markets at breakneck pace within a plethora of imploding asset values and credit balloons. Markets are operating under extremely stressful conditions and experiencing large, widespread asset mispricing. Significant market dislocations have become not uncommon over the past 20 years. They can provide attractive buying opportunities for those prepared to provide liquidity (at a discount) when sellers demand. It’s all down to timing and capitalizing on dislocations has the potential to enhance a portfolio’s … Continue reading “Using The Market Dislocation Index to Enhance Portfolio Risk Adjusted Returns”
Stock Market Bearish Sentiment at Highest Level Since 2009
Investor sentiment is a key gauge for the velocity and voracity of a market potential move. A dark cloud has come over the markets in the past few weeks after higher CPI numbers in the US, shocking inflation report in Germany, the threat of war and a hawkish Federal Reserve. Globally Central banks have been raising rates at breakneck speed. The latest AAII Sentiment Survey reflects this mood with the percentage of individual investors describing their six-month outlook for stocks … Continue reading “Stock Market Bearish Sentiment at Highest Level Since 2009”