Through our experience from working with more than a few grain farmers, we are always dealing with the producer dilemma of choosing whether they should hedge or make a cash sale. As similar as the two choices appear to be, they are NOT one in the same. Each action will eliminate downside price risk, but… Read More.
When talking about Wheat futures, it is important to understand that there are three distinct contracts. Not only are the three contracts based on different Wheat products, but each trade at three different exchanges. It’s important to be aware of the contract differences as the price patterns may also differ. Let’s start with the first… Read More.
Corn and Wheat futures had a good rally off midweek lows. After two days of rally the Taylor Trading Technique was looking for a Sell Short day today. The anticipation aspect of the TTT was helpful this morning. The daily chart for July wheat futures is below. Wednesday saw a test and recovery over the… Read More.
I probably sound like a broken record for writing this but I like to trade crude oil futures when the weekly EIA crude oil inventory report is released. It has the potential to cause sudden market move but is often less likely to cause the crazy overshoot reactions of a once a month report. Today… Read More.
Savvy traders, who understand the term structures of futures markets, often use the butterfly futures spread to isolate certain contracts in which they feel demand or supply will be the strongest or weakest. Some people are only aware of the options version of this trade (read the past article). While the futures version of the… Read More.
Yesterday stock index futures staged a rally out of a breakout setup, closing near the session high. Following a breakout rally the Taylor Trading Technique tells us to anticipate a Sell short day; there were a number of interesting factors in today’s setup. The daily chart is below. Yesterday’s rally stopped a Fibonacci retracement resistance… Read More.
August Feeder Cattle: Buying on a hold of strong support and a test of the 50% retracement. The Relative Strength Index (RSI) indicator is also showing the market to be oversold at this point. August Feeder Cattle has found a strong support level of 150.25. This is also a 50% retracement of the low of… Read More.
Kenny Rogers’s song The Gambler held, in my opinion, some of the most succinct trading advice ever penned. This was his advice: “If you’re gonna play the game, boy, ya gotta learn to play it right. You got to know when to hold ‘em, know when to fold ‘em, Know when to walk away and… Read More.