Beware: Cotton Heading For a Dip

While many traders primarily focus on resources like gold or oil, there are plenty of other opportunities in the commodity space. One such opportunity lies in cotton, which can be found in almost every textile product around the world; but as a soft commodity this constant demand does not always translate into consistent returns. The fluffy crop has enjoyed a strong start to 2013, but  is well known for its large movements from day to day and for keeping investors on their toes [for more cotton news and analysis subscribe to our free newsletter].

Posted in Agriculture, Commodity ETFs, Commodity Futures, Cotton | Tagged , | Leave a comment

Housing Data Remains Strong, But Lumber Prices Suffer

As the U.S. economy finally picks up its pace, many investors are returning to the corner of the market that was one of the primary sources of the 2008 financial crisis: housing. Across the board, housing stats have been on the rise in recent years, including home prices, housing starts, building permits and construction. As such, interest in the raw materials involved in housing have also benefited from the uptrend, particularly lumber [for more commodity news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Agriculture, Asset Allocation, Commodity Futures, Lumber, Timber | Tagged | Leave a 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

Ethanol Comeback May Boost Corn Prices

The global energy space has been dominated by discussions about fossil fuel alternatives in recent years, as there are a number of solutions to our addiction to these commodities. One of the most popular options has been the use of corn-based ethanol in crude oil, which decreases the amount of crude oil needed when the ethanol is mixed in. While it is not a one-stop solution, many see it as a sign of weening ourselves off of crude oil and working towards a more renewable resource [for more ethanol news and analysis subscribe to our free newsletter].

Posted in Commodity ETFs, Commodity Futures, Commodity Producers, Corn, Energy, Ethanol | Tagged , , , | 2 Comments

Natural Gas: Is Now The Time To Make A Play?

Natural gas is one of the most popular commodities in the world and it often ranks among the CME Group’s most traded futures contracts; however, the commodity had been stuck in a rut since the 2008 recession before it finally saw some relief as 2013 opened. From natural gas’s peak to the beginning of the year, the fossil fuel had declined by more than 92%, as a number of macroeconomic factors weighed on the commodity. Just as it finally picked up steam in 2013, NG sputtered into May, dipping more than 9% through the first week of the month [for more natural gas news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Asset Allocation, Commodity ETFs, Commodity Futures, Energy, Natural Gas | Tagged , , | 1 Comment

Peter Schiff: Gold Is At A Steep Discount

Even gold bugs have to admit that the yellow metal has seen better days. After hitting record lows on April 15th, many analysts have speculated that gold may no longer be a viable investment option, at least not in the way it has been in the past five years. With investor faith and gold prices reaching fresh lows, some see these new market conditions as an opportunity. Well-known for his high opinion of gold and commodity centered investment strategies, Peter Schiff thinks these low prices could provide a huge payoff for savvy investors who are willing to continue gambling with gold prices [for more gold news and analysis subscribe to our free newsletter].

Posted in Asset Allocation, Gold, Precious Metals | Tagged | 3 Comments

Caution: Tin Slumps Into Bear Territory

Industrial metals have been on somewhat of a bumpy road so far in 2013, though recent price movements in the copper market have made investors think twice about this corner of the commodities world. Last week, copper futures soared after several encouraging reports from China, the world’s second largest economy and one of the largest consumers of the metal, helped boost optimisim for copper demand. Though copper’s outlook has improved, there is one industrial metal that has not benefited from the rally: tin [for more industrial metals news and analysis subscribe to our free newsletter].

Posted in Asset Allocation, Copper, Industrial Metals, Tin | Tagged | Leave a comment

Earnings Preview: Crude Oil And Transocean (RIG) Rally Ahead Of Quarterly Results

The bulls are still in the drivers seat on Wall Street as stimulus hopes on both sides of the Atlantic Ocean are keeping confidence levels elevated despite lackluster fundamental data. The latest monthly employment report at home managed to beat expectations, and the data revealed that the labor market recovery is still sluggish at best; nonetheless, stocks are still charging higher as investors have embraced the latest round of interest rate cuts from the European Central Bank and the Reserve Bank of Australia [for more news and analysis subscribe to our free newsletter].

Posted in Earnings, Energy | Tagged | Leave a comment

Precious Metals Look Golden For Market Bears

Investing in precious metals has become an extremely popular choice for equity investors looking to hedge their portfolios. Generally, this commodity class has gained the reputation as a “safe haven” holding during volatile market periods, but recently precious metals have flipped sides and saw a period of relatively high correlation to equities [see also 2013 Commodity Trades You Wish You Made].

Posted in Gold, Precious Metals, Silver | Tagged , | 4 Comments

Buy Crude Before The Summer Rally

One of the most attractive features of the commodity space is its cyclical returns. While it may make it difficult for long term investors, traders who know the patterns of certain hard assets can often turn a nice profit simply based on the natural price movements of different commodities. Crude oil is no exception to such patterns, as savvy investors have been profiting from the fossil fuel’s trends for years. Though crude has been exhibiting weakness with questions about its long-term future, its short-term seasonal trend may be a ripe opportunity for traders everywhere [for more crude oil news and analysis subscribe to our free newsletter].

Posted in Actionable Ideas, Commodity ETFs, Commodity Futures, Commodity Producers, Energy, WTI | Tagged , | Leave a comment
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