Maybe inflation is not a concern but one can trade it as commodities look to be more expensive in the coming sessions and coming weeks to months. The 100 day MA has supported Crude futures the last two sessions; in March at $86.20. As voiced in previous posts we suggest scaling into longs in futures [...]
In case you were not aware the FOMC is meeting today and tomorrow so stay alert as even inaction can be a market mover. We’ve advised aggressive clients to scale into longs in Crude futures and to gain bullish options exposure; today some clients bought May $95/100 bull call spreads. The 100 day MA held [...]
Third consecutive down day in Crude as the August contract today traded below the 9 day MA for the first time in two weeks; that level is $75.80. There should be some more work on the downside but we would expect buyers to emerge between $73-74. August natural gas is finding support at the 20 [...]
“Rates will likely stay low for an extended period.” Thanks for the update…the problem is rates may stay too low for too long. Does anyone remember Greenspan at 1.0%. It appears the market has no short term memory? Energies were higher with the exception of natural gas which failed to close higher 2 days in [...]
For no rate change the market still reacted violently with the Fed all but admitting inflation is in our future. They have committed for the next 6 months to get the cost of borrowing down…hence rates down prcies up on debt. This should set up a fantastic short in the euro-dollars. Keep your powder dry, [...]
OPEC delivers the anticipated cut but it aoppears the market had already priced this in as it was no secret. Front month Crude was down 8% on the day. If playing energies we prefer the long side of natural gas looking for the recent lows to hold. Gold and silver continue to merit your attention. [...]
Sounds like a broken record but the dollar rules the roost. After a 75-100 basis point reduction in rates what ammunition wil the Fed use next? Get familiar over the next couple months with the term “quantitative easing.” The US dollar was 2.25% lower today and has lost 9% in the last 8 days. Many [...]
