Commodity Trading Trends: Cotton Futures Dragging

The final month of the quarter saw a fair amount of volatility as far as commodities are concerned. With a number of global factors combining, performances were spread across the board. Cotton, in particular, had a strong March, as futures prices gained as much as 3.8% over the four week period. But as April and Q2 have begun, cotton has been struck with selling pressures. April’s losses have yielded to roughly 4%, erasing nearly all of the gains that copper futures had enjoyed in the previous month [see also Dividend Special: Top Companies In Every Major Commodity Sector].

Posted in Agriculture, Commodity Trading Trends, Cotton, Exclusive | Tagged | Leave a comment

Daily Commodity Roundup: 4/10/2012

As stocks go so does the market. I expect the decline in equities to lead to further depreciation elsewhere…consider yourself warned. Crude makes a lower low today and I expect prices to be under $100 for the first time since early February very soon. My target remains $97.50 in May Crude. RBOB and heating oil also appear to be headed lower as another 15 cents south should be the mark if Crude hits my target…trade accordingly. Expect natural gas to be below $2 this week. I had a few clients call today looking to be a buyer…I say hold off until there is a catalyst to justify a bottom. Where do prices bottom $1.80…1.60…1.40 who knows?

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Daily Commodity Roundup: 4/9/2012

May Crude traded within 80 cents of $100 and below the 100 day MA for the third session in a row. This support level is a big deal so I expected a fight. My contention is a break below that level in the coming sessions drags May to at least the 38.2% Fibonacci retracement level at $97.50. I told my clients that are short today that we’ve likely gotten 60-70% of the profit out of the trade and not to get greedy. Though $92-96 is feasible we will cut and run around $97 if given the opportunity. Another $3-5 depreciation in Crude should pressure the distillates 10-15 cents further.

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Why You Should Invest In Natural Gas: The Fuel of the Future

As gas prices continue to maintain their high levels, consumers are growing tired of surrendering their hard-earned money at the pump. But a break in gasoline prices may not be on the horizon, as the U.S. already pays well below the average of a number of other developed countries around the globe. And if history is any indicator, gas prices will continue to rise until a figure like $9 per gallon is just the norm; it may sound far fetched, but it also doesn’t seem like that long ago that you could get a gallon of gas under $2. With crude oil only slated to get more expensive, it seems that many are turning towards natural gas to be the fuel of the future, as its production and use has been surging in recent years [see also 25 Ways To Invest In Natural Gas].

Posted in Energy, Exclusive, Natural Gas | Tagged | 10 Comments

Without the FED…Now What

Without further stimulus if the markets are forced to stand on their own two legs we should see a further retracement. My opinion on most commodities with a few exceptions is we have risk of more downside. Crude oil bounced off the 100 day MA today regaining 2/3 of yesterday’s losses closing 1.7% higher. I admit I expected some follow through today but the momentum is clearly shifting to the bears. I may be the minority but I am still looking for a sub $100 trade. My expectation is on a trade in May below $100 we could quickly move to $97.50…my target. Both heating oil and RBOB are at the lower end of their recent trading range as I expect a further sell off. Remember a $1 move in Crude should equate to a 3-4 cent move in the distillates. That would mean if the stars aligned and Crude … See the full story here

Posted in Agriculture, Energy, Exclusive, Gold, Natural Gas, Precious Metals, Silver, Trading, WTI | Leave a comment

The Best (and Worst) Performing Commodities From Q1

Now that the first quarter of 2012 is in the books, investors will reflect on their holdings to see if it is time to make any adjustments. While most equities turned in one of the best first quarters in recent memory, not all commodities were quite as lucky. As always, commodity price drivers often vary considerably from general equities, so it should not come as a surprise to see some of the more severe losses that some of these assets have posted. For those looking for the next cheap buy, or commodities that have been on a tear, we outline some of the best and worst performing futures from the first quarter of this year [see also 12 High-Yielding Commodities For 2012].

Posted in Agriculture, Brent Oil, Canola Oil, Energy, Exclusive, Gasoline, Platinum, Precious Metals, Soybeans | Tagged , , , , , , , | 6 Comments

Commodity Trading Trends: Natural Gas Still Slipping

While a number of commodities enjoyed the first quarter of the year, natural gas continued to be one of the worst performing assets in 2012. NG’s losses have now amounted to over 30% on the year, with losses of 9.4% coming in the last five days alone. As the commodity continues to hit new lows, investors and experts have been trying to call the bottom, only to watch it fall even further. Now that Spring is upon us, there is a good chance that natural gas is poised for even more losses, as warmer weather will curtail demand for NG-powered appliances, leaving high stockpiles and subsequently pushing prices into the dirt [see also 25 Ways To Invest In Natural Gas].

Posted in Commodity Trading Trends, Energy, Exclusive, Natural Gas | Tagged | 1 Comment

Forget Gold, Why Your Portfolio Needs Silver

For the past few years, the investing world has turned gold into its darling commodity, as its meteoric rise was well-documented and thrust into the forefront of major media and news sites. All the while, its sister metal silver received very little attention by comparison. Now, many see gold as a great portfolio diversifying agent, a sound inflation hedge, as well as a great place to grow initial capital. While gold may be poised for a bright future, silver may present an even greater opportunity that investors would do well not to ignore [see also 25 Ways To Invest In Silver].

Posted in Exclusive, Gold, Precious Metals, Silver | Tagged , , , | 6 Comments

Three Worst Performing Commodity ETFs Over The Last Three Years

Ever since markets crashed in 2008, investors have been slowly increasing their risk appetites, shifting towards more lucrative and risky asset classes such as commodities. Some investments in this category have flourished, while others haven’t fared so well. Natural gas is perhaps the first cringe-worthy commodity that comes to mind as investors witnessed its unprecedented free fall over the last few years. But with NG and some of the other big losers comes a potential buy in opportunity at rock bottom prices. Whether you’re looking for a bargain or simply want to avoid these bad-performing funds, we outline 3 of the worst performing commodity ETPs over the last three years. Note that this list is a bit modified in that we only chose one fund from each commodity type [see also 12 High-Yielding Commodities For 2012]. 

Posted in Agriculture, Cocoa, Commodity ETF Analysis, Commodity ETFs, Energy, Exclusive, Natural Gas | Tagged , , , | 19 Comments

Does GLD Really Hold Gold, Or is it a Scam?

The SPDR Gold Trust (GLD) is one of the most popular exchange traded products in the world, as it is home over $68 billion in assets and an average trading volume topping 16 million shares. This fund features a physically backed exposure to gold while charging fees of just 0.40%. The yellow commodity has been surging in popularity in recent years as the precious metal soared past $1,900/oz. while analysts and investors speculated about where the asset was headed. For many investors, GLD is their go-to investment vehicle for gold exposure and trading, as futures contracts can often be complex and dangerous [see also Why No Investor Should Own GLD].

Posted in Commodity ETF Analysis, Commodity ETFs, Exclusive, Gold, Precious Metals | Tagged , | 47 Comments
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