Category: Futures, Options and Commodities
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Measuring Opportunity with the Strength of Trend Index
Investors often fail to evaluate investment results in the context of the market environment. No two investment years are equal; some calendar years provide greater opportunity to make money in certain investments than others. When judging investment results, it is important to consider the performance of an investment relative to market activity. Long-only stock investments…
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The Bull Market In Commodities Remains Intact
The weakness in commodities over the last month was merely the market’s way of shaking weak hands out of the market. Fundamentally nothing changes, nor does the trend of spot commodity prices. Everyone is obsessed with watching the behavior of commodity futures markets but these are so subject to speculation that all they really tell…
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Zero Sum Game
The point about zero sum game is that there are position holders on both sides of the trade, meaning that for every buyer (long position holder), there is an opposite seller (short position holder). A gain or profit for one participant represents a loss for the opposite participant. Forex (foreign exchange) and futures markets are…
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The Advantage of Trading Systems
People are slow to change. People tend to remain skeptical about new technology simply because they are unfamiliar with it and because it is not widely accepted by the public. Interestingly enough, the need for public acceptance is more of a driving factor in validating new technology than the actual merits of the technology itself.…
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Online Trading and Offshore Investing
Offshore investments have gotten a bad rap in the past for illegal activities like tax evasion and money laundering. While this still happens occasionally, occurrences are much less frequent. Now, a record number of individuals are taking advantage of offshore opportunities, and it’s 100% legal. There are several ways to use an offshore investment to…
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Bernanke Speaks…will you Listen?
Image via Wikipedia Not only is tomorrow a Fed decision day on rates Bernanke will be interviewed so expect fireworks. Inside day in Crude oil as we failed to make a new low with prices closing only marginally lower. Our bearish bias exists but we would like to see confirmation. On a break lower we…
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Saxo Bank adds Brazilian futures exchange
From April 18 Saxo Bank offers direct online trading of Bovespa index futures and a futures contract tracking the USD/Brazilian Real currency cross on the Brazilian futures exchange. By providing access to the Brazilian exchange, Saxo Bank will enable investors to diversify into a new geography and further spread their portfolio exposure across asset classes.…
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Why Commodities in a Portfolio
This is not an April Fools joke…commodities belong in all portfolios if an investor has some risk aversion just look what’s happening in commodities compared to other asset classes. Crude has its highest close in 2011 to kick off the first trading day in Q2. The momentum should carry prices upwards of $110/barrel but we…
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Fat Tuesday
Our wallets as consumers are not fat with the rising price of commodities this Fat Tuesday…from gas to a loaf of bread prices are moving higher. Crude is showing signs of exhaustion…NO I’m net advising getting short but a $5-7 correction seems reasonable. A trade back to just the 20 day MA in May drags…