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Current Markets Macro Viewpoints

Customer Safety Comes First

Andy Waldock1 Comment on Customer Safety Comes First

The events at MF Global and their commingling of segregated funds stands in stark contrast to the lineage of their retail business. Lind-Waldock was founded in 1965 and operated for 35 years as one of the most successful retail brokers ever. It was founded by Barry Lind and Jack Waldock who sold it to Refco in 2000. Refco & MF Global both went bankrupt due to corporate greed. I’m proud to put my lifetime in the futures markets to work serving our clients and doing business the way I was taught. Old world values, new world tools.

Current Markets Macro Economics

Decoupling the Stock Market from the Economy

Andy WaldockComment on Decoupling the Stock Market from the Economy

The stock market may be poised to rally through the end of the year. Individual investors and fund managers are so paralyzed by the fear of a collapsing Euro that they’ve failed to notice the decoupling of the stock market from the broader domestic economy. This has led to a huge build up of speculative money on the short side of the market as well as lightly invested fund managers. Short covering investors and managers chasing returns could very well push the S&P 500 higher through the end of 2011.

Current Markets Trading Strategies

Corn is a Value at $6 Per Bushel

Andy WaldockComment on Corn is a Value at $6 Per Bushel

Corn futures sell off of more than 25% from the summer highs brings back profitability to hog, cattle and ethanol producers. The corn futures option expiration cycle sets us up with an opportunity to take a limited risk position in front of next weeks USDA Crop Production Report. Corn futures are undervalued at $6 per bushel as viewed by commercial commodity traders.

Current Markets Trading Strategies

Sugar Futures Set to Fall

Andy WaldockComment on Sugar Futures Set to Fall

The Sugar market is one of the most volatile commodity markets. Sugar has made four moves of plus or minus more than 50% since the beginning of 2010. Sugar touched .36 cents per pound this February. This was the highest sugar futures have been since 1980 when they reached nearly .45 cents per pound. Currently, October sugar futures are around .28 cents. I believe the fundamental supply factors in this market are set to drive sugar down to a more normal valuation around .16 cents.

Current Markets Macro Economics

Will Germany Kill the Recovery?

Andy WaldockComment on Will Germany Kill the Recovery?

The markets have been relatively quiet since with strong buying coming in near the lows from commercial traders. My concern is that the commercial traders will be net sellers of stock index futures this week as they bank some profits and take risk off of the table in advance of next week’s Bundestag ruling on the constitutionality of Germany’s direct participation in the European Financial Stability Facility. Any withdrawal of support from Germany would literally be, catastrophic. Given Germany’s history of political dissent as well as their recent history of economic self-sufficiency this decision could very well be an historic landmark.