For energy traders, the winter months are some of the most active of the year as demand for commodities like natural gas often skyrockets. With weatherman forecasting this December to be the coldest since 1983, investors could be in for some lucrative plays in the natural gas market. Cold weather has already begun to sweep across the nation, with the Midwest and Northeast–two regions that rely heavily on gas for heating–already experiencing plummeting temperatures since before Thanksgiving [for more commodity news and analysis subscribe to our free newsletter].
Over the last few years, investors have witnessed the U.S. become a dominant force in the crude oil and natural gas space, thanks in part to rapid development in technologies. The use of hydraulic fracturing, or fracking, has boomed in recent years, as the technology has made it possible to reach significant oil and gas resources that had previously demonstrated a poor flow rate and weren’t economically accessible [for more commodity news and analysis subscribe to our free newsletter].
So far in 2013, commodity markets have had a troublesome year, with many analysts speculating that the epic commodity boom seen in recent years is finally over. On the equity side, however, major commodity producers have benefited from this year’s bull run, logging in double- and triple-digit gains. Oil and gas producers in particular continue to come out on top, while precious and industrial metal miners struggle to stay out of the red. But on this Thanksgiving Day, it is perhaps most appropriate for us to reflect on those commodity producers we’re particularly grateful for [for more commodity news and analysis subscribe to our free newsletter].
Though many day traders base their decisions on technical trends, savvy commodity traders also incorporate factual fundamental reports into their research to ensure that they are on the right side of the trade at all times. For energy traders, the data and outlook provided by the U.S. Energy Information Administration (EIA) are some of the most important reports to follow [for more commodity news and analysis subscribe to our free newsletter].
The bears are back in town; although they are a bit late this year when you consider that the broad U.S. equity market sank upwards of 5% in 2012 from mid-September to mid-November thanks to mounting fears over the “fiscal cliff.” Policymakers on Capitol Hill kicked the can down the road last year, and here we are again worrying about our nation’s growing debt burden with a clear plan of action in sight [for more commodity futures news and analysis subscribe to our free newsletter].
Warren Buffett–the Oracle of Omaha–is one of the world’s most renowned investors, heralded for his simple yet effective valuation methods. As such, followers of the legendary investor pay close attention to when Buffett places big bets, and they hope that by following his stock picks, they will cash in on Buffett’s guru-like instincts [for more commodity stock news and analysis subscribe to our free newsletter].
For mining and exploration companies, 2013 has been somewhat of a brutal year. Metal miners in particular have been hit significantly this year as falling metal prices, weaker demand, and rising operational costs continue to plague the industry. Popular exchange-traded funds, like Van Eck’s Market Vectors Junior Gold Miners ETF (GDXJ), and other industry giants, such as Barrick Gold (ABX), have suffered significant losses these year; both of these securities have shed more than 45% year-to-date [for more commodity news and analysis subscribe to our free newsletter].
Bullish forces have returned to Wall Street as market participants appear to be changing their tune regarding the looming Fed taper; investors seem to be embracing the potential reduction in bond-repurchases judging by the market’s upbeat reaction to better-than-expected economic data, which up until recently served as an excuse to lock-in profits before the taper. Nonetheless, volatile trading is likely to dominate markets over the coming days as uncertainty in Syria could spark worries that shift focus away from the Fed meeting slated for September 17-18 [for more commodity futures news and analysis subscribe to our free newsletter]. Given the recent rally and impressive gains across Wall Street YTD, many are hesitant to jump in long, especially ahead of the possible taper announcement. As such, below we highlight three commodity stocks that may offer an attractive short selling opportunity for those looking to bet against some of the stellar run-ups already seen … See the full story here