Commodities

Traders: Wait For Crude Oil Bounce Before Going Short

It looks pretty clear at this point that WTI Crude Oil futures have broken down from a substantial topping formation. A head and shoulders top could be drawn a few different ways. I prefer not to get hung up on every detail of a chart pattern or the measuring implications. The bottom line here is that crude oil has broken below a threshold that leaves it without any meaningful technical

Insights From Oil and Elliott Wave: Where Will The S&P 500 Travel Next?

The market is under pressure and traders are eager to answer the question: will the S&P 500 (SPX) once again bounce off the channel it has neatly traded in since 2012 or endure a deeper pullback? The following three charts derive insights from Oil and Elliott Wave Theory to offer further perspective about where the market is trading and the support levels that traders will be keying in on in

Why Market Volatility Is About To Make A Big Comeback (In 50 Charts Or Less)

2014 continues to build it’s reputation as a year full of counterintuitive market dynamics: Q2′s zombie volatility has (finally?) subsided – just as the seasonal period known as the Summer Doldrums is scheduled to kick in. Some of the shine has come off broad momentum trades active investors have piled into such as High Yield Corporate Bonds (HYG), Semiconductors (SOX) and Biotech IBB). Despite positively-received Q2 Earnings, Major Regional (KRE)

Are Cotton Prices Finding A Bottom?

Commodities started off the year strong but as the crop reports started rolling in of the bumper crop that was expected for this year, prices began to fall a couple months ago. We now have some futures markets sitting near multi-year lows, which means it might be time to start looking for interesting setups. With that, I think Cotton prices may be ready to start putting in a bottom. The

Gold Analysis Without The Noise, Just The Fibs Ma’am

No COT reports, no China or India demand, no consideration of  so called “manipulation, ” just good old fashioned technical analysis using a very simple Fibonacci method. Let’s work our way through some charts and see if we can highlight some key Gold Fibonacci levels. Let’s start with a 5 year weekly chart of Gold Futures, noting some key Gold Fibonacci levels (price support and resistance).   As you can

10 Reasons Investor Confusion Reigns Supreme In 2014

Considering the way the markets behaved during the first half of the year, it should come as no surprise that there are high levels of investor confusion surrounding the near-term direction (and theme) of the markets. On a day-to-day basis, investor sentiment ranges from a head scratch to a high five to you gotta be kidding me.  Several technical and fundamental indicators have flashed caution to no avail. And this has given way to an

Why Crude Oil Is Back On Investors’ Radars

The ups and downs of Crude Oil prices can provide a pretty good barometer of what to expect from the general market. Last August, I drew our attention to the oil paradox: The Oil Paradox is simply when demand confirms recovery early in a bull market cycle and prices continue rising until outsized input costs later precipitate a price fall. The tight band that Crude Oil prices travel depicts the consumer’s vulnerability in a steadily

Why Copper May Deserve A Place In Your Portfolio

Since the beginning of 2011, copper has been a lousy market aside from the occasional position trade. But that tide could be ready to change. This could create an investment opportunity in iPath DJ-UBS Copper Trust Sub-Index ETN (JJC). COMEX copper futures have dipped beneath 3.000 three times since May 2013 and recovered each time. That appears to be a psychological floor. What particularly jumps out at me is a

Gold Investors: 5 Things To Watch For This Summer

Just as Gold looked destined to retest the lows, the yellow metal found its shine and rallied into the Fed statement on June 18, 2014. In the trading business, we call that a “head fake.”  And it came at the perfect time – right as Gold investors were about to give up. 80 points later, Gold has emerged from its slumber and may be ready to rally. But in a

Energy Sector: Key Indicators Point To A Pullback

The Energy Sector has been one of the best performing sectors in 2014. The Energy Select Sector SPDR ETF (XLE) is up over 15%, and geopolitical turmoil in Iraq and the Ukraine have helped add fuel to the fire for the bullish case on this sector. However, with this large move in price, it appears the proverbial rubber band has become overextended. Below is a chart of XLE going back to