Commodities On The Move - Issue 1

If you ever grew up watching classic 80's comedy films, you should remember Eddie Murphy and Dan Akroyd's Trading Places. Inspired by a true story, two wealthy old white guys (I have to be careful here because one day that'll be me) decide to make a bet that anyone under the right circumstances can make money in the markets. What's relevant to this article is that they used Commodities as the chosen market to do it in.

If you care to read the inspirational origin story, here it is:

The Commodities Futures markets are an often forgotten goldmine, no pun intended.

While retail traders routinely obsess over markets they associate more closely with 'the economy', such as currencies and stocks, there is in the background a quietly, hard-working sibling of an asset class...commodities.

The appeal for more experienced traders to engage in futures trading here is multitudinous:

1. Strong technical behaviour i.e. more consistent.
2. Great liquidity and execution.
3. Market integrity - exchange-traded.
4. Not as susceptible to moods
5. Seasonal patterns

I enjoy comms (Commodities) as they can often produce strong, sustained trends.

No wonder Commodity Traders make so much money - if you haven't already read any of Larry Williams' work on trading comms- you should start with this one:

Here are a few I'm trading and/or watching in February 2022:

Coffee (KC) | Bullish

SoyBean (ZS) | Bullish

Live Cattle (LE) | Bullish

ULSD Heating Oil (HO) | Bullish

Orange Juice (OJ) | Bullish, currently producing a buy signal on the weekly chart O_o

RBOB Gasoline (RB) | Bullish

And Heating Oil (HO) | Bullish, also producing a nice clean buy signal

I mean, I don't know if you can call these charts sexy, but if you could, this would be a veritable PlayBoy catalog of curvy commodities.

Jack Schwager wrote some good stuff on futures as well in his recent book:

That's it from me this week, but there's no excuse not to at least be considering looking at these under-appreciated markets.

Signing off,