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Current Markets Trading Strategies

End of the Sugar Decline

Andy WaldockComment on End of the Sugar Decline

The sugar market, currently trading around $.17 per pound has been drifting slowly lower since making its all time high of $.2957 per pound in August of 2011. Last week, the market fell through a key support level at $.1662 and traded down to $.1617 before reversing to close on its highs for the week. This could very well be the catalyst to rising sugar prices over the next few weeks.
The sugar market can be exceptionally volatile. Sugar’s average annual movement over the last five years is about 225% from high to low. …

Currencies Current Markets

Tidal Shift in the Bond Market

Andy WaldockComment on Tidal Shift in the Bond Market

The recent spike in Treasury yields could very well be signaling a change in trend direction. We rarely try to pick tops or bottoms in major trending markets. It simply doesn’t pay. However, we’re seeing lots of corroborating evidence that this may signal a shift in the global macroeconomic outlook. Therefore, this is one of the rare times when a pull back within the interest rate sector may not be a buying opportunity. In fact, if this is the beginning of the Great Unwinding we need to focus on all of the evidence to obtain a complete picture …

Current Markets Trading Strategies

Planning Ahead Trading Futures

Andy WaldockComment on Planning Ahead Trading Futures

They say that the most important read for a comedian is timing. The comedy in trading is that the market typically delivers its own punch line at the expense of the trader’s timing. Twenty years of trading has proven one thing right over and over again; traders aren’t meant to get it right. The markets constantly change and a pattern that has been developing for months may be no good on the day
the trader pulls the trigger. When the trader is right, they’re lucky to price either the entry or the exit well. Typically, there’s meat left …

Currencies Current Markets Macro Economics

Effects of Deflating the Yen

Andy WaldockComment on Effects of Deflating the Yen

The Japanese economy has been on life support since their stock market peaked in late 1989. This is also when they began to lose their productivity gains in manufacturing and technology against their
neighbors. Their immigration policy and small family sizes have shrunken the labor pool to a point that even with consistent per capita GDP growth, they continue to fall behind fiscally. Their new
Prime Minister, Shinzo Abe is attacking deflation in Japan in a way that makes Ben Bernanke look like a spendthrift. The obvious objective of deflating the currency is to make Japanese exports …

Current Markets Trading Strategies

Spread Trading the Russell 2000 Vs. S&P 500

Andy WaldockComment on Spread Trading the Russell 2000 Vs. S&P 500

The stock market has made a lot of noise this week with the Dow Jones Industrial Average climbing above 15,000 for the first time in history. In fact, all of the major averages are up about 18% year
to date. There is a general consensus that the massive liquidity operations the Federal Reserve board has implemented are the primary contributor to the market’s rally. However, there are several
competing theories as to where the top may be. This week, we’re going to take a look at seasonal tops in the Russell 2000 small cap stock index compared to …

Current Markets Trading Strategies

Grain Market Repeat of 2010

Andy WaldockComment on Grain Market Repeat of 2010

The grain markets are beginning to look like 2010 all over again. The corn, bean and wheat markets all had substantial rallies, with each setting all time highs in 2008. The markets then formed a secondary peak in 2009 before drifting lower to sideways through the early summer of 2010, which ended up being the base for the all-time highs. The most consistent reason for expecting a similar outcome this year is based on the same external factors in play this year like, ending stocks and global demand. …

Current Markets

The AP Hack Crash Facts

Andy WaldockComment on The AP Hack Crash Facts

The first article of mine that was picked up by the Sandusky Register was written in the late afternoon on May 6, 2010 as I put together the notes for our clients explaining the “Flash Crash,” what and how it had happened. Tuesday afternoon the Twitter account of the Associated Press was hacked and the following tweet was sent from their account, “Breaking:
Two Explosions in the White House and Barack Obama is injured.” The stock market plunged one percent in less than three minutes. Within five minutes, …

Current Markets Trading Strategies

Short Covering Spike in the Sugar Market

Andy WaldockComment on Short Covering Spike in the Sugar Market

The sugar market is currently displaying a number of characteristics that truly define what trading in the futures markets is all about both long and short-term as well as trend and counter trend strategies. Looking at the sugar futures market from a long-term trading perspective it is easy to see that short traders have been in control of the market since the last upward spike in prices last July. The sugar futures have steadily declined under the growing certainty of …

Macro Viewpoints

Impartial Review of the Monsanto Bill

Andy WaldockComment on Impartial Review of the Monsanto Bill

President Obama ran for office in 2007 based on, “hope” and “change.” He offered hope for a better future and promised immediate change in the way agribusinesses market their product to the American consumer. This included country of origin labeling as well as labeling for genetically modified or, genetically engineered food sources. Last week, President Obama signed into law HR 933, otherwise known as the, “Monsanto Protection Act.” This refers; specifically to Section 735 of the spending bill that roughly states that bio-engineered seeds can be used without labeling while the court system decides whether or not …

Macro Viewpoints

Dodd – Frank vs. the Financial Industry

Andy WaldockComment on Dodd – Frank vs. the Financial Industry

The capitalist version of the Golden Rule goes something like this, “He who has the gold, makes the rules.” This is exactly what we are seeing with the implementation of the Dodd – Frank Act. The financial institutions have the resources to stall, drag, markup, and negotiate on every one of the 243 rules, 67 studies and 22 periodic reports the Act contains. The most recent markup session was a classic example of, “The Golden Rule” at work. The House Agricultural Committee’s recent markup session included bills to gut the most important parts of the Dodd – Frank …