Weekly Commodity Strategy Review

Another week of good calls with two out of three trades well in the money and the third is still hanging on.

We began the week by sending our COTSignals discretionary customers a sell signal in the Australian Dollar on Sunday evening. The market opened Sunday night at $.8026 to the U.S. Dollar and hasn’t looked back. It’s currently pushing $.7800, accumulating more than $2,000 per contract thus far. We detailed this trade for TraderPlanet on Monday in, “Aussie Dollar: A Commercial Trader’s Perspective.”

Tuesday our attention shifted to the soybean complex. Specifically, the July soybean meal futures which have been bumping along the $300 per ton support level. As long as this holds, we could get a solid short covering rally. You  can read the full details in our piece for Equities.com in, “Growing Support for Soybean Meal Futures.”

Finally, our main focus this week was on the unwinding of the record position that commercial traders had accumulated prior to this market’s test of significant technical, seasonal and economic resistance. We published, “Copper Traders Revers Course” with both short and long-term charts as well as seasonal analysis provided by Moore Research. This market is down more than $.10 ($2,500) since we sent out the COTSignals discretionary sell signal for the 19th’s trade date.

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