I'd like to begin this week's recap with last week's primary piece, Commitment of Traders Report Returns S&P 500 to 1900. Also note that we we alluded to this setup as early as last Tuesday in our piece for Equities.com when we first discussed the shift in commercial trader bias while we were still sitting at 1975 in the December S&P 500 futures. Read more in, Commercial Selling Tips S&P 500 Bias.
Other than the equity markets, our focus was on the extremely oversold nature of the metals markets, in general with special attention paid to the relationship between platinum and gold. Being unsure of how far the metal markets could ultimately decline, we favored a spreading approach of owning platinum and selling gold near parity. This appeared as a genuine value trade within the commodity markets and didn't last long as that spread had already widened to $60 by Wednesday.
We began with Monday's piece for TraderPlanet - Metals Markets Oversold - Reversion Imminent.
We followed up on this Thursday with more details on executing the spread in - Trading the Platinum vs Gold Spread.
Finally, I'll leave you with one for today. The action in December live cattle is currently providing a classic topping formation. Please call to see if this trade may be a good fit for your investment needs.
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