What Big Banks Are Saying About Commodities in 2014

As 2013 comes to a close, several analysts have already published their predictions for the coming year with most remaining cautiously optimistic about the global economy in 2014. So far this year, however, commodity markets have struggled to stay out of the red, with many analysts speculating that the epic commodity boom seen in recent years is finally over. Though on the equity side, commodity producers have benefited from this year’s bull run, with oil and gas companies in particular logging in double digit gains [for more commodity news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Brent Oil, Commodity Futures, Commodity Trading Outlook, Commodity Trading Trends, Energy, Gasoline, Gold, Industrial Metals, Livestock, Natural Gas, Nickel, Precious Metals, WTI, Zinc | Leave a comment

Contrarian Alert: GOLD Trade Offers Attractive Risk/Reward

Investors ran for cover last week after the bulls’ confidence was rattled by the Fed, which hinted at scaling back on their bond-repurchases earlier than many were anticipating. Profit-taking pressures hit equity markets overseas and at home as fading stimulus hopes prompted a sell-off ahead of the prolonged holiday weekend for Wall Street; nonetheless, investors appear to be back on the scene in a bargain buying mood as major U.S. indexes have managed to snap back and appear to be well on their way to resuming the uptrend at hand [for more commodity futures news and analysis subscribe to our free newsletter]. Gold prices and producers of the yellow metal remain severely depressed as momentum has failed to return to the precious metals market following the steep sell-off seen earlier in April. Contrarian investors should add Randgold Resources (GOLD) to their watchlist because this mining behemoth is resting on major historical support, … See the full story here

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Contrarian Alert: Is It Time To Buy Cliffs Natural Resources (CLF)?

The party continues on Wall Street; investors remain bullish on stocks judging by the sheer price action as both the S&P 500 and Dow Jones Industrial Average managed to close out last week well above their all-time highs. The economic data front is sending hints of a potential downturn as manufacturing indicators remain weak; nonetheless, this has failed to put a noticeable dent in the bulls’ armor of confidence as markets shrugged off last week’s worse-than-expected industrial production data [for more market news and analysis subscribe to our free newsletter]. Not every stock is surging to record highs; in fact, one particular large-cap miner offers a risky, but compelling, opportunity for investors still looking to get a piece of the action on Wall Street. Contrarian investors should add Cliffs Natural Resources (CLF) to their watchlist because this former S&P 500 sweetheart is resting on major historical support, thereby offering a great entry point for those … See the full story here

Posted in Commodity Trading Outlook, Commodity Trading Trends, Steel | Tagged | 1 Comment

Aussie Dollar Weakness A Dangerous Sign For Gold

The commodities front remains mixed as the U.S. dollar’s recent rally has put downward pressures on many resource prices. Furthermore, the ongoing bull run on Wall Street has prompted many investors waiting on the sidelines to jump into equities in lieu of chasing paltry yields in the bond market or lackluster returns in the commodities space [for more market news and analysis subscribe to our free newsletter]. Surprisingly, gold has managed to keep afloat in recent weeks amid the stock market euphoria, which is a commendable feat given the extreme selling pressures it saw earlier in April. The outlook for the yellow metal remains mixed, however, as technical patterns and currency market trends are hinting at another round of selling in the near future.

Posted in Commodity ETF Analysis, Commodity Trading Outlook, Commodity Trading Trends, Gold | Tagged | 6 Comments

When Goldman Sachs Says Short Gold, It’s Time To Buy

Last week, we reported on Goldman Sachs (GS) slashing its outlook for gold and suggesting investors short the precious metal.  In a letter to its clients, analysts at the company stated “We see risk to current prices as skewed to the downside as we move through 2013. In fact, should our expectation for lower gold prices continue to prove correct, the fall in prices could end up being faster and larger than our forecast.” But given Goldman’s history, it will be difficult for many to trust this sentiment [for more gold news and analysis subscribe to our free newsletter].

Posted in Academic Research, Commodity Trading Outlook, Gold, News and Current Events, Precious Metals | Tagged , , , , | 10 Comments

Earnings Sneek Peak: Alcoa (AA)

One of the biggest names in aluminum production and exploration, Pittsburgh based Alcoa (AA) is one of the best known firms in the commodity world. The company operates in over thirty countries and is only rivaled in size by international firms Rio Tinto (RIO) and Rusal. Falling prey to a struggling industrial sector, Alcoa and many other mining corporations have been feeling the pressure since the recession began in late 2008. With their first quarter earnings report coming up on Monday, all eyes will be fixated on the materials giant [for more metals news and analysis subscribe to our free newsletter]. 

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Freeport-McMoRan (FCX) Nears Major Support Level

The bull train is surging full steam ahead on Wall Street with the S&P 500 Index reaching five-year highs while the Dow Jones Industrial Average continues its ascent into uncharted territory. Investors have had few reasons to take profits over the past week with Cyprus debt drama slowly fading away while economic data releases continue to support a bullish case; this week alone construction spending and factory orders data figures have trumped expectations, while key employment data is on tap for this Friday [for more market news and analysis subscribe to our free newsletter].

Posted in Commodity Trading Outlook, Commodity Trading Trends, Industrial Metals, Trading | Tagged | 1 Comment

Silver Wheaton (SLW) Ready For Comeback

Buying pressures continue to reign supreme on Wall Street as bullish euphoria has failed to evaporate – much to the bears’ frustration. Major equity indexes remain on a steep climb higher while the commodity market remains mixed at best; year-to-date, some commodities like corn and crude oil are clinching onto minor gains, while others like gold and silver remain in red territory [for more market news and analysis subscribe to our free newsletter]. With most equities either sitting at or headed towards new highs, many are hesitant to jump in after such a stellar run-up. Luckily, the investable universe is wide and not every security has enjoyed wild gains thus far in 2013. Silver-mining bellwether Silver Wheaton Corp. (SLW) presents an intriguing opportunity at the moment that warrants a closer look from contrarian investors looking to get a piece of the action on Wall Street.

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Contrarian Alert: First Solar (FSLR) Rising From The Grave

The bull train has hit a few bumps in recent trading sessions as a wave of European woes over the weekend has prompted some to take profit. Nonetheless, “buying on the dip” remains a dominant theme on Wall Street as bullish pressures continue to reign supreme on the equity front [for more market news and analysis subscribe to our free newsletter]. With most equities either sitting at or headed towards new highs, many are faced with the tough decision of waiting to pull the sell trigger in an effort to maximize profit without getting burned by the impending correction. Luckily, the investable universe is wide and not every security has taken advantage of the bull run on Wall Street.  Green-energy bellwether First Solar (FSLR) presents an intriguing opportunity at the moment that warrants a closer look from contrarian investors looking to get a piece of the action on Wall Street.

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Bottom Fishing In Goldcorp Inc. (GG)

The Dow Jones Industrial Average hit all-time highs last week, spawning a wave of euphoric headlines across the financial media. What’s truly impressive is that buyers continue to step in at virtually every pullback, which is quite the risky maneuver when you consider the stellar run-up seen on Wall Street since the November 16 lows last year [for more market news and analysis subscribe to our free newsletter].

Posted in Commodity Trading Outlook, Commodity Trading Trends, Gold, Trading | Tagged | Leave a comment