Category: Futures Trading
| |The equity reversal was tough on many trend-followers. This reversal spilled-over to US bonds during the month. Good buy trend signals now in both equities and bonds. Dollar strength reversed on Fed pause remarks. Metals and energy both moved higher during the month even with global growth threats. Commodities asset class is not a trend rich environment at this time. … Read more Risk-on- What happened to fears of 2018?
| |A review of trends in each of the major asset class sectors shows that there should be a strong return opportunities in July. Global stock indices are declining on trade war rhetoric and action. This growing sense of risk has spilled-over to bond markets through classic risk-on/risk-off behavior. Bonds have gained even with the threat of higher inflation. The dollar looks to continue its up trend as money flows back to the US and away from EM. Precious metal prices have fallen on the dollar strength. In spite of the Saudi’s willing to increase oil production in response to falling inventory, oil prices have continued to trend higher. Grain prices have fallen on fears of a trade war in agricultural exports to China. The general direction in commodity prices has been lower … Read more Strong Trends Across Most Asset Class Sectors Point to a Strong Opportunity Month
| |The clearinghouse is the truly special feature of any futures exchange because it allows buyers and sellers to comfortably come together to trade with only limited credit risk. Traders know that they do not have to worry about the specific risk of their trade counter-party because their risk is with the clearinghouse. We know that the actual structures in place are more complex than this simple story. The mechanics make all the difference so changes should be looked at closely … Read more The Clearinghouse, FCM’s, and the New DFP’s