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Archive | December, 2006
Cotton Futures Hit 3-Month High
March cotton futures on Thursday popped to a fresh nearly three-month high of 55.50 cents a pound. Bulls do have upside technical strength, as they have worked prices well off the contract low of 50.81 cents, scored in late November. The next upside price objective for the cotton market bolls (woops, I mean bulls) is […]
Profit Taking in Cocoa; No Chart Damage
March cocoa futures on the New York Board of Trade on Tuesday hit a fresh five-month high of $1,694 a ton. On Wednesday morning the market is seeing some profit-taking pressure from recent strong gains, but no technical damage has been inflicted. In fact, price action the past week can be considered a “pause,” whereby […]
Don’t export that Zinc
During the Roman empire, ruthless leaders became fascinated with the possibility of world domination. By extending its military and conquering lands throughout Europe and Egypt, Rome became arguably the greatest sovereign state the world has ever seen. Eventually, however, it became a mammoth too large to contain, and enormous amounts of money were required to […]
Housing Slump …Not
Perhaps, now that some of the air has been removed from the helium balloon, it appears that prices in the housing market have softened. The bottom line is that the housing balloon has simply corrected its excesses and, is really in fine shape. Looking at the cost of money, there is some good news for […]
Economic Fundementals
This week was quite active on the U.S economic front. Several key announcements gave traders insight into the fundamental factors driving the foreign exchange market. The first major event was Tuesday’s FOMC meeting on interest rates, the result of which left the target rate unchanged at 5.25%. The committee cited a substantial slowdown in the […]
Dollar Hedge Trade
The Dollar continues to be weak, but we feel that since we are long most of the other currencies against the Dollar, some kind of “hedge” is prudent. This trade is a great hedge for any of you who are currently long The Euro, The Pound, The Yen or really almost any other currency against […]
Silver Trade Recommendation
Silver has seen a very solid bull trend over the past few months and more recently, has been consolidating around the $14.00 level. This consolidation has formed a bull flag and this trade is simply a low cost way to be long an at the money call. To buy the 14.00 call by itself, rather […]
Cotton Trade Recommendation
For the last 3 months the ceiling for the cotton market has been just above 54. Three prior attempts to push through that level failed and sellers obviously controlled above that level. However, the most recent pullback was much shorter and shallower than the previous moves, and it now appears that buyers may have the […]
Commodity Traders Almanac
Knowledge of the past and awareness of the present are essential if you intend on successfully navigating the commodities markets. To make the most of your time in these markets–whether you’re trading or hedging–you need the invaluable insights that can only be found in the inaugural edition of the Commodity Traders Almanac. (more…)