The number of global geopolitical/economic flashpoints has expanded dramatically,Given the ongoing gains in US equities, unrelenting strength in crude oil prices, and a lack of sustained concern over the possible derailment of the global economy by US/China trade salvos, one gets the sense that…
A major shift in the commodity environment might be in motion. Strength in energy prices has not only surprised the trade, it has also strengthened fund interest in the commodities. A potential massive inflation development could come…
The monthly payroll report often gives good trade opportunities. It’s a challenge for me as a writer; I tend to have a few markets in mind for trade candidates, but it’s usually impossible to actually get a communication about a trade idea before the move has come and gone. I send out Swing Trader’s Insight… Read more.
In last night’s edition of Swing trader’s Insight I labeled the Treasury Bond futures as having a breakout setup for today. Although it didn’t meet my normal criteria for a breakout setup, the fact that it had relatively direction trading on Tuesday (setup) when combined with Fed Chair Yellen’s Congressional testimony (a likely catalyst for… Read more.
It would appear that the markets are locked and loaded for a March 15th rate hike, with some players suggesting an increase in probability that there will be three hikes this year.
While the jury remains out on the direction of the US economy, comments from the Fed recently calling for higher inflation targets and more action to stimulate growth probably spark two lines of reasoning.
The Fed passed on hiking rates, but the lift to most commodity markets off that news was not very impressive, and this suggests that the path of least resistance is likely to remain down.
Recent talk of fresh easing from the BOJ and BOE seems to have been largely discounted as ineffective, and that has prompted a revival of safe haven interest in gold and US Treasuries.
Commodity markets are seeing nearly a perfect storm of bearish factors during the first 2 weeks of 2016.
In looking ahead to the coming week, we expect additional commodity pressure going into the FOMC meeting off of a stronger dollar in anticipation of an interest rate hike.