Tag: danielstrading.com

Technically Speaking: Markets you should be watching RIGHT NOW!

Posted on by The INO.com Team

October 2012 / March 2013 SUGAR spread  By: Brian Cullen

I look to get back involved in a spread that we were involved with back in June with a positive outcome. The formation once again looks like a great spot to re-establish the trade.

The fundamentals remain mixed as supplies and production appear to be on pace for the year, which has lead to the 400 point sell-off since the end of July. However, open interest continues rise and has reached the highest levels since our involvement in late June. This perhaps is suggesting we have quite a bit of short positions that have been added as we reach oversold territory. Should these traders begin to head to the sidelines, this should provide the support needed in this October contract for this spread to narrow before October comes off the board. Continue reading "Technically Speaking: Markets you should be watching RIGHT NOW!" →

Savvy Option Trading for Well-Capitalized Investors

Posted on by The INO.com Team

If you are a “writer” of commodity options, you inherently have exposed and unlimited risk. However, it’s this risk potential that provides the capacity to reap rewards. Therefore, a savvy commodity option writer understands that managing risk is more important than reaping rewards. The trade setup below details a strategy to help protect short option positions with longer than a month until option expiration. In a follow-up, I will discuss a strategy to help protect short option positions with less than a month until option expiration. These strategies can be tailored to reach your short term objectives and long term goals. Continue reading "Savvy Option Trading for Well-Capitalized Investors" →

The Gold & Silver Speculator

Posted on by The INO.com Team

The Gold & Silver markets spent yet another quiet week languishing in the summer doldrums essentially going nowhere fast with prices tightly bound within tiny ranges and even weaker trading volumes.

Bulls and Bears alike seem content to wait things out to see just whether something of significance will come to pass 2 weeks from now at month’s end during the Jackson Hole Symposium and ECB Policy Meeting.

For now, “The Song Remains the Same” (Markets = Dead Calm) as both sides of the trade sit idly “Waiting On a Friend.” (Bernanke QE On/Off?) Or “Waiting For the Sun.”(ECB Bailouts) (Thank you to The Led Zeppelin, The Rolling Stones, and The Doors) Continue reading "The Gold & Silver Speculator" →

Beyond the Spotlight: Highlighting This Week's Potential Breakouts

Posted on by The INO.com Team

September 2012 Euro Currency

The September 2012 Euro Currency contract lows are trading along a lower trend line, touching at 1.2051 (7/24/12), 1.2140 (8/02/12), and 1.2258 (8/16/12). A close below the lower trend line will trigger a sell entry. It appears the market will need to settle at 1.2280 or lower for confirmation of a breakout. The Trend Seeker (a GBE trading tool) confirms the market is in a down trend. The 50 day moving average (1.2387) is just above recent highs which could act as resistance and a natural level for stop losses. A short term target could be the 1.2051 low from 7/24/12. The stochastic indicator crossed over to sell signal and MACD is converging. These indicators may fall in line once the breakout occurs. Continue reading "Beyond the Spotlight: Highlighting This Week's Potential Breakouts" →

WASDE Special Report

Posted on by The INO.com Team

By: Craig Turner

The USDA will release the August WASDE tomorrow at 7:30 AM CDT. We are expecting cuts in yield and production for Corn and Soybeans. We are also expecting draws on the global wheat supply.

While many analysts are expecting the USDA to cut yields, production and stocks in this WASDE report, prices will not automatically rally. The market has already priced in the expectations of production cuts. Therefore, it is very important to know the market expectations for the report tomorrow. If the cuts are greater than what the market expects, prices should rally. If cuts are less than what the market expects, prices should decline. If the report comes in as expected, the WASDE could be a non-event in the Grain Markets. Continue reading "WASDE Special Report" →