Tag: oil
-
Commodities: A Range of Opportunities for 2021 – Market Outlook
| | Commodities
“With a new secular bull trend, Commodities are among the most attractive markets this year. This commodity environment could be an exceptional moment to be in a spread program.” The economic pendulum tends to be swinging towards commodities. The notion that low commodity prices are their own cure may be playing out in 2021[1], with help from its relationship to the post-pandemic economy and mean-reversion risks of a high dollar and U.S. stock market. Also, improving demand and central banks worldwide seeking expansionary policies are giving commodities a boost. After years of a bear market, Commodities seem to be undervalued … Read more Commodities: A Range of Opportunities for 2021 – Market Outlook -
Sigma Advanced Capital – Disruption in the Energy Markets
| | Energy
Today Oil surged around 14% after the Saturday attack on Saudi Arabia Oil processing complex Abqaiq. Meanwhile, there is uncertainty as to if the Aramco will be able to restore full capacity, while the US is blaming Iran for the aerial attacks, increasing geopolitical Risk. … Read more Sigma Advanced Capital – Disruption in the Energy Markets -
12 Questions to Ask Before Selecting a Commodity Trading Advisor
| | Commodities, Economics, Education, Futures
Here is a list that I’ve developed for Individual investors to know the answers to or ask before investing their risk capital with a Commodity Trading Advisor or Professional Money Manager. This checklist is ever evolving as new information comes to light or the dynamics change in the market place. Our hope in providing this list of questions is to assist new and even veteran investors to Managed futures a “system” or “methodology” that can provide them with crucial information, and steer them away from cardinal mistakes before placing their hard earned funds with a trading advisor. This is not our … Read more 12 Questions to Ask Before Selecting a Commodity Trading Advisor -
What are Carrying Charges and how do they influence hedging decisions?
| | Education
In order to fully get the “error” in selling grain at harvest and then buying calls to replace that grain, so as to still participate in possible higher prices you need to understand how carrying charges work in the grain markets. The definition of “carrying charges” is: an expense or effective cost arising from unproductive assets such as stored goods or unproductive assets; includes interest, insurance and storage costs. Basis is the price difference between cash and the underlying futures contract (at a specific time), and to take it a step further you need to take a serious look at … Read more What are Carrying Charges and how do they influence hedging decisions? -
How a Commodity Trading Advisor may use Expectancy & R Multiples
| | Education
When you trade the markets, you really don’t know the exact probability of winning or losing on a given trade. Additionally you won’t know exactly how much you will profit or lose. What a CTA does is extensive historical testing on his / her concepts, and trading strategies to get an idea of what to expect. They will also pull huge data samples of market prices from either a data vendor or from real-time trades, in order to get a clearer picture, and to really try and nail down the “expectancy” of their particular methodology and trading system. After investigating trade-by-trade … Read more How a Commodity Trading Advisor may use Expectancy & R Multiples