This is a sample entry from Drew Rathgeber’s newsletter, The Rath Overlay, published on Friday, January 24, 2014.
By The Numbers
- US National Debt $17,341,189,890,219
Per Tax Payer $150,607
- Unfunded Liabilities $127,556,488,489905,236
Per Tax Payer $1,107,568
In The News
Banks Aid U.S. Forex Probe, Fulfilling Libor Accords
Banks bound by cooperation agreements in an interest-rate rigging probe are providing a windfall of information to U.S. prosecutors investigating possible currency manipulation, according to a Justice Department official and a person familiar with the matter. (more)
IMO: Why I’ve never been a fan of the Forex markets. This is another reason why, Currency Futures is the way to go. It’s traded via a regulated centralized exchange, not between you and some dealing desk. I’ve always scratched my head over this one.
Cold Snap Sends Natural Gas Futures to 2 ½ – Year High
NEW YORK — Natural-gas futures climbed to a more than 2 1/2-year high Wednesday, as frigid temperatures over the eastern two-thirds of the U.S. stoked demand for the heating fuel.
Natural gas for February delivery rose 16.2 cents, or 3.7%, to $4.597 a million British thermal units on the New York Mercantile Exchange, after climbing 2.4% Tuesday. Earlier in the session, the February contract reached the highest price since June 14, 2011. Prices have rallied more than 15% since falling to a one-month low Jan. 9. (more)
DROUGHT: Californians face ‘new reality’ of water scarcity
Living with long-term drought could become the “new reality” for California, experts said after Gov. Jerry Brown (D) on Friday officially declared the state’s record-shattering water shortage.
Water managers, farmers and fishermen are girding themselves for water scarcities in the months ahead. Some fear not only that the drought’s effects will be more pronounced than previous dry spells, but that the populous state might be forced to adjust to less precipitation on an ongoing basis. (more)
IMO: I’ve personally been watching this drought situation closely, and know the Sierra Nevada’s are currently in some serious trouble if moisture doesn’t come soon. So far this season approximately only 45” of snow has fallen in the Sierra’s Nevada Mountain Range, effectively creating very little snow pack. Considering 10%-15% of California’s economy is agricultural based, this drought could be a huge blow leading to higher food prices.
In The Markets
Emini S&P (ES)
Market Comments: If you have been looking to go long, today is your day without risking too much! Currently sitting right on the 40 EMA.
Market Comments: Caution on this market and like I’ve said I’m watching closly, I’ve taken some losses as we didn’t break through support. We have a fresh cross on the daily, however this weekly chart still holding bearish sentiment. Key area is the $1,273.
Market Comments: Great location, if your looking to short again, without risking the boat! Once again, I recommend solid risk management as other commodities have turned bullish for the moment.
Market Comments: The reason I put this one in, to show a small trade someone can take with the objective being the 15 day EMA. Like I said, this is just a small trade.
IMO – In My Opinion
Subscribe to The Rath Overlay
The Rath Overlay - Authored by senior broker, Drew Rathgeber, The Rath Overlay uses timeless methods to clearly identify market opportunities and guides the confident execution of your focused trading plan.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.