Trading Natural Gas Futures Seems Very Risky, Why is That?

Natural gas futures prices have been extremely volatile in 2022 since the Russian invasion of Ukraine and the stories of heavy losses by traders and speculators begs the question why. There are several reasons why trading natural gas futures can be risky. One reason is that the price of natural gas is highly volatile and can fluctuate significantly in a short period of time. This makes it difficult to accurately predict the future price of natural gas, which can lead … Continue reading “Trading Natural Gas Futures Seems Very Risky, Why is That?”

Understanding Commitments of Traders Reports – COT, TFF and DCOT

The Commodity Futures Trading Commission (CFTC) publish the Commitments of Traders (COT) reports with a breakdown of open interest for futures and options on futures markets. More specific, disaggregated reports (DCOT) came after the GFC in 2008. They are considered very helpful in understanding the positioning of traders in the futures market. Disaggregated Commitment of Traders Reports (DCOT) came about from a recommendation made by a CFTC September 2008 staff study about the influence of swap dealers and index traders … Continue reading “Understanding Commitments of Traders Reports – COT, TFF and DCOT”

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”

Emerging Markets Longest Streak of Withdrawals Ever with Risk Spread Contagion

Emerging markets have seen the longest streak of withdrawals on record, for five straight months flows have been aggressively flowing out. The soaring US dollar is causing systemic de-risking and deleveraging throughout the global periphery and frontier emerging markets. Liquidation and default risks are high in areas like private equity and venture capital. These types of reactions feed on with higher interest rates, stymieing growth and increasing risk. In July outflows by international investors in EM stocks and domestic bonds … Continue reading “Emerging Markets Longest Streak of Withdrawals Ever with Risk Spread Contagion”

Traders Musings Over Stock Market Chaos & Madness After Fed, Jobs and Technology Sell-Off

Looking back at a volatile week with TradersCommunity Trading Room traders. Friday closed with the US jobs report and heavy market selling. Join Andrew, Alex and Mahdavi in a candid discussion of the markets, fundamentally and technically within their trading plans. Feel free to share, like and subscribe to our channel and comment below. Get insight from traders after the chaos in Small Caps through to the S&P and Nasdaq futures and options as they explain through charts and trades. … Continue reading “Traders Musings Over Stock Market Chaos & Madness After Fed, Jobs and Technology Sell-Off”

Daytrader FOMO Risk Reminder – Island Reversal – Orphazyme Pumped Up 1,387% Halted and Dumped With Huge Gap Down

Mind management is key to trading. Controlling your emotions and avoiding the pitfalls of the Fear of Missing Out (FOMO) is critical. Secondly you are never out until you have completed the trade. We look at Orphazyme’s $ORPH stock wild ride with 20 volatility halts ending in a violent island reversal trapping longs.

Dude Where’s My Uber? A Story of Greed and Delusion or Opportunity?

Uber Technologies Inc reacted to the fallout from the Lyft initial public offering by lowering the IPO price in an attempt to lessen any negative impact, that was not the case. $UBER shares Fell 7.62%, losing over $200 million, the 5th biggest loss for an IPO in 30 years.

Number One Risk for 2018 Is A Brutal Correction of Stock Prices Says French Watchdog

France’s market watchdog Autorite des Marches Financie (AMF) sees as the number risk for 2018 a brutal correction of stock prices. Goldman Sachs Bull/Bear Index is at the highest in almost 50 years. Analysts preach this time its different, is it?

Stocks Crash Revives Memories of 2008, What Next For S&P Futures

Stocks and the S&P 500 Index crashed on Friday in the index’s sixth-worst one-day point drop ever, however given we are coming from 2880 plus in percentage terms it was ‘just’  around 2.50% . To put that in perspective, its a minor bump from a 30% rise. Perhaps. Its all a matter of entry and leverage.