Weekly Commodity Strategy Review

We began this week by revisiting the sugar futures market. We started talking about it a couple of weeks ago for Equities.com in, “Time to Sweeten on Sugar.” We updated this outlook Monday for TraderPlanet.com. This trade finally triggered on Thursday and currently sits above the $.1310 level that we believe will induce some speculative short covering. See, “Sugar Prices on the Decline.”

Tuesday we focused on some disappointing news for silver bulls as commercial traders were quick to sell the recent rally above $17.25 per ounce. In fact, we showed that this is the most bearish the commercial traders have been on silver since 2010. Finally, we published a chart that clearly shows the effect that commercial selling has had on this market in, “Silver Still has Further to Decline.”

Finally, our primary trading focus of the week zeroed in on the growing spread between the U.S. Dollar Index and the Euro currency. We’ve been tracking this spread diligently as we’ve reached record levels of commercial interest in both of these markets. Our first trading signal went out Tuesday night in our Discretionary COT Signals. We posted the currency section below but this methodology covers all primary domestic commodity markets.

Discretionary Commitment of Traders Trading signals provide the action to be taken (long or short) as well as the protective stop placement.
Nightly discretionary Commitment of Traders Trading signals provide the action to be taken (long or short) as well as the swing high/low protective stop placement.

  While many are calling for the Euro to fall towards $.80 to the Dollar, we believe there will be a leg higher, first.

Record Position to Narrow US Dollar vs. Euro Currency Spread

We also provide a 100% mechanical application of our adaptation of the Commitment of Traders Reports. You can view individual hypothetical equity curves and assemble these into portfolios simply by clicking the radio buttons of the markets that spark your interest.

See – Mechanical Equity Curves


This material has been prepared by a sales or trading employee or agent of Commodity & Derivative Advisors and is, or is in the nature of, a solicitation. This material is not a research report prepared by Commodity & Derivative Advisors’ Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Commodity & Derivative Advisors believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.