MBWealth’s Commodity Blog

Finally it looks like the smart money is recognizing the opportunity in a non-correlated asset class, i.e. COMMODITIES. Crude oil has appreciated 3.7% off yesterday’s lows which we feel will serve as an interim low. Our upside targets on October are $75.85 followed by $77.50. Crude oil, RBOB and heating oil were higher by 1.50-2.25% [...]

Bearish inventory report and a $2 reversal higher in Crude…smells like a bottom to me. It looks like longs dodged a bullet and we should be moving north from here. Assuming today’s lows hold a $3-5 pop could come relatively quickly. I was most impressed with heating oil today as it led the charge higher [...]

Investors lose money in commodities every day and there is a tremendous amount of risk but at least these markets are moving. Recent standouts: cocoa 33 year high, sugar 29 year high, coffee 13 year high, cotton 2 year high, pork bellies record high, gold record high, corn 8 month high, wheat largest one month [...]

A tight trading range, increased volatility, high correlations, and quick reversals…sound familiar. Oil will close down almost 1% today briefly trading below $73/barrel. Prices are fast approaching the previous support levels that held in both May and July. Will three times be a charm? We’re advising clients to lightly gain bullish exposure expecting prices to [...]

Like a Sloppy Joe it might be messy but the end result can be tasty. Translation be nimble even with sideways two sided trading there are plenty of trading opportunities. Oil has finished lower 10 out of the last 12 sessions reaching a six week low today. However today is the last trading day for [...]

Oil will finish down today but notice the chart pattern; a higher low and higher high. We think scaling into longs at these levels makes sense as a trade back over $80 is expected in the coming weeks. The distillates are expected to find support at the current levels as well; RBOB and heating oil [...]

Traders that have been around know this all t0o well “plan your trade” and “trade your plan.” Crude will finish lower today but well off it’s lows on a bearish inventory report. On such a bearish report the fact that Crude was able to hold its own we think a rally is in the making. [...]

Nothing too exciting today as markets settle in waiting for the next catalyst. We’re not overly bullish but prices did rise in Crude oil today for the first time in six sessions. We expect an interim low to be made this week and a $4-6 bounce from here. That should equate to a 15 cent appreciation [...]

Call it the summer doldrums but a majority of markets appear to be waffling back and forth. October Crude appears to be digging in its heels around the $75/barrel level. Aggressive traders could probe longs as we see prices back over $80 in the coming weeks. In this sector if forced just to pick one [...]

One simple question does anyone beside Rick Santelli understand the ramifications of kicking the can down the road? Oil appears to have dropped enough to find some interested buyers trading down just over 7% this week. We’ve advised traders to take at least partial profits on shorts as there should not be much more work [...]