Dealing With Losses

I received a good question from a new trader being mentored a little while ago. I ended up writing an essay on it.

Trump Trading Tactics

Those that have trained with me know I like asking that question: what is the market trying to do? I cannot remember where I picked it up. I think I overheard another trader saying it one day a long time ago. The idea, well my idea at least, is to stop you from getting too […]

Sweet Divergence

Here is a nice little chart in Sugar. It shows the May-Oct spread on top and the May contract below. May and October are in different crop cycles, so this is an old-new crop spread. The interesting thing here is how the spread was following the underlying, as you’d expect. Then it stopped and made […]

Trading The Obvious

In a recent update we looked at a spread trade in Corn, citing the upside move was overdone and the spread had the potential to narrow dramatically. See here. Over the last few weeks, the spread has done exactly that. This illustrates a very interesting point – unexplainable or extreme moves are often followed by […]

Size Isn’t Everything

I can’t help it. I keep seeing similarities between riding a motor bike and trading. They are everywhere.

Who Says Technicals Do Not Work?

An interesting move in Soybeans last night. The market finished limit down with heavy offers. It looked nothing but bearish. The reopen saw the market trade down 15pts pretty quickly. Then a retrace to cover the gap, resistance at spot on 1669 held and the market fell always again. Classic textbook technicals. Sometimes trading is that simple.

Q&A: Correlated Spreading

Q: Is it possible to trade a spread between Copper and the SPI?

A: It’s not a recognised ‘spread’ as such but these markets are correlated, so there should be spreading opportunities.

How to Use Pivot Points in Intraday Trading

While around for many decades, pivot points have grown in popularity since the 90’s with what has been an increasing focus on intraday trading. This article will set out the calculation of pivots and some ideas on how to use them.

Gold – tough market, but there is always an angle

$900 seems like a key level for Gold. This chart from March 2009  shows several points of resistance and support. Generally speaking the more a level is tested either as support or resistance, the more significant a breakaway becomes. Does this forecast near term direction? Not quite. But it does imply a breakaway within the next […]

Relative Stock Performance

It’s interesting to see how the Aussie market has performed compared with the US. The chart shows the S&P (black line) and the ASX200 futures adjusted for the change in the currency. From the recent peak, the S&P has lost 12% and the adjusted Aussie market has lost 27%. So why the difference? That resources […]

Commodity Action in Early 2010

With a host of physical commodity markets showing impressive upside action in the early days of 2010, it certainly seems like the world needs commodities.

Look for opportunities in corn & wheat

The combination of late planting and slow maturation in the US corn crop resulted in a full-fledged October weather market in corn last week. In this case the “weather market” came on a freeze warning in the Northwest Corn Belt that is expected to trim 100-150 million bushels off the most optimistic private forecasts of […]