Beyond the Spotlight is a weekly video released on Mondays that spotlights two or three markets that may become trading opportunities for the week ahead. This enables you as a subscriber of the Trade Spotlight advisory service to look ahead with us, while potentially creating additional trading opportunities for yourself. The week’s video linked below… Read more.
While the fear of a series of 2018 rate hikes has provided commodities with a double negative from a rising rates/strengthening dollar perspective, we think the path to higher rates won’t be as direct as what was priced into the market in late February. First of all, we think the excess stock market volatility from the beginning of February will serve to soften the February scheduled release data (the first of which will be the employment report on March 9th), and that could temporarily pull back the anticipated number of rate hikes.
The number of negative geopolitical issues has expanded consistently over the last two weeks, and this has undermined the long bull market in equities.
This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Spreads, published on Thursday, April 27, 2017. There is a bear futures spread trade opportunity in Cotton. The spread is in a Channel Formation, selling the spread only on a break of a lower trend line. The stop loss will then be placed… Read more.
The most important developments this past week were a market-perceived delay in the timing of the next US rate hike, another failed rally in the dollar, and upside breakouts in gold and silver off the latest wave of US/Chinese trade war fears.