Weekly Commodity Strategy Review

Another week of good calls with two out of three trades well in the money and the third is still hanging on.

We began the week by sending our COTSignals discretionary customers a sell signal in the Australian Dollar on Sunday evening. The market opened Sunday night at $.8026 to the U.S. Dollar and hasn’t looked back. It’s currently pushing $.7800, accumulating more than $2,000 per contract thus far. We detailed this trade for TraderPlanet on Monday in, “Aussie Dollar: A Commercial Trader’s Perspective.”

Tuesday our attention shifted to the soybean complex. Specifically, the July soybean meal futures which have been bumping along the $300 per ton support level. As long as this holds, we could get a solid short covering rally. You  can read the full details in our piece for Equities.com in, “Growing Support for Soybean Meal Futures.”

Finally, our main focus this week was on the unwinding of the record position that commercial traders had accumulated prior to this market’s test of significant technical, seasonal and economic resistance. We published, “Copper Traders Revers Course” with both short and long-term charts as well as seasonal analysis provided by Moore Research. This market is down more than $.10 ($2,500) since we sent out the COTSignals discretionary sell signal for the 19th’s trade date.


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.