After 8 days of rest and relaxation we are back at it trying to figure out the best risk/reward scenarios in the commodities market. It is vital in our opinion to evaluate both before establishing positions as many commodity traders just look at the reward side of the equation. After approaching $86 in early dealings […]
Tag Archives | Mathew Bradbard
2009 Commodity Review
Investors who positioned their portfolios thinking the Bull market in commodities was over were proven wrong in 2009. Several commodities saw multi-decade highs & a majority of commodity sectors showed above average returns as seen in the attached chart. There were a few standouts; Copper was higher by 140% trading back to levels seen in […]
NFP Non-Event
Regular readers are probably tired of hearing this but as for oil we are anticipating a $4/5 correction form these levels. We decided to push some money into the middle with some of our aggressive clients and advised them to buy April $82.50/$75 put spreads. A 38.2% Fibonacci retracement takes prices back to $78.50 on […]
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Swing Trading Applied to Commodities
Definition/theory: Swing trading is typically defined as a trading practice whereby the underlying instrument is bought or sold at or near the end of an up or down price swing caused by daily or weekly price volatility. A swing trade position is typically open longer than a day, but shorter than trend-following trades or buy-and-hold […]
Dollar Rallies Alongside Commodities
After 8 days of selling Crude is now oversold with the daily stochastic at 10 & 15 in the January contract. Clients have been advised to buy March $5 call spreads as we expect a $5 move higher in the coming weeks. Natural gas is too volatile for our liking currently. We will be looking […]
Gold sets the Tone
Crude looks poised to move higher but before committing capital we’d like to see the inventory report tomorrow. We feel that without any bearish developments the recent test of $75 could prove to be support. We’re tracking bull call spreads in addition to selling puts and buying calls. In the last 9 trading sessions natural […]
Gearing up for NFP
Oil is still trying to making up its mind on where to go. We have no opinion or positions currently but will most likely have suggestion in the coming weeks. Natural gas looks to close at slightly better levels, we still like 75 cent January call spreads. Fresh short entries in cocoa enjoyed sliding prices […]
Risk is Relative
Even after the recent market turmoil it appears investors still have an appetite for risk. Whether the risk taking is misguided is debatable, but the reality is if investors are more informed about the inherent risk they may be more comfortable taking risk. Though there still seems to be more questions than answers for investors […]
Commodities: For all Scenarios
When I started working in commodities, almost a decade ago, they were considered a dirty word and certainly not a place for the average Joe to invest. Within the last few years, thanks to investors becoming more open minded, the overall performance of commodities and other asset classes, commodity futures and options are quickly becoming […]
Bulls, Bears, Pigs and Sheep
You don’t need to go to the zoo to see animals, rather look at the common investor and how they maneuver within their portfolio. I’m not talking about giraffes and elephants but rather bulls, bears, pigs and sheep. Bulls make money in a bull market, bears make money in a bear market, pigs are greedy […]