05/25/2020: Double Whammy for Energy Prices
Whammy #1 was the Saudi-Russian "war", trying to drive everyone else out of business in the energy markets by over-producing and cutting prices on crude oil and its products. That one might go away if the combatants realize that trade wawrs are only huring everyone. Whammy #2 is the pandemic, and that is probably not going to go away any time soon. Would you really want to board a crowded airline and sit 24" seat back to seat back while the person ahead leans back as far as he or she is able. There is some thought that even when vaccines are developed, the fear of inflection will linger on and availability of both testing and vaccines will remain limited for the foreseeable future.
We can say for a fact that even on a long holiday weekend our experience has been very light traffic on national highways.
Our recent article on Gasoline is in the Archives Section below.
05-31-2020: Some Commodities We Haven't Currently Reviewed
How do we pick a commodity for review? Here are technical strength or weakness ratings for 05/29/2020 on the other major commodities not being currently being reviewed or traded on this site. One way to choose a commodity for review is to look at the previous activity and compare it to the present one, to see if there were any dramatic changes. Commodities currently under review on our list of about 18 on this site are not shown below. It's a way of keeping track of what else is going on with other commodities.
Current Activity: Previous Activity
The ratings are good only for date shown, and rapidly change each day, whereas we review the list only periodically. Once a commodity appears on our list of articles and is being currently traded, we consider its long-term direction has been established and trade consistently from that direction wtihout worrying about day-to-day changes. However, that procedure is not the one we use in swing trading stocks.
05-25-2020: August Gasoline: Pessimism About Price Recovery
05-03-2020: June Australian Dollar: Not Just About Interest Rates Anymore
04-24-2020: June Gold: Hyperinflation Fears
04-13-2020: July Natural Gas: Weather, Virus, and the Economy
04-07-2020: July Soybean Meal: Logistics Problems Getting to Market
03-29-2020: June Euro Currency: U.S. Lack of Fiscal Restraint Weakens Dollar
03-13-2020: June Japanese Yen: Flight to Safety
03-04-2020: May Lumber: Struggle to Recover from Supply Disruptions
02-23-2020: March Copper: Virus and Over-Valued Equities Threaten Demand
02-13-2020: March Swiss Franc: Negative Interest Rate Effect
02-01-2020: March NASDAQ 100 Index: Not Virus But Overvaluation Should Be Feared
01-24-2020: March Treasury Notes: Chinese Virus Influences
01-18-2020: March Oats: Reduced Planted Acreage
01-04-2020: March Feeder Cattle: Less Liquidity and Direction
12-19-2019: April Platinum: So. African Power Outages Affect Mine Production
12-10-2019: March Coffee: Global Supply Diminishes
11-23-2019: January Orange Juice: Supply/Demand Issues
10-30-2019: December Ethanol: Uncertainty Faces Use
10-25-2019: December Silver: Bank Illiquidity Supports Precious Metals
Updated once a week (usually on Saturdays) unless the preceding week had less than five trading days.
Some contracts involved a roll forward from May to July and August, and previously reported initial prices were adjusted to reflect the new contract equivalent.
Involved were feeder cattle, lumber, and orange juice.
# Commodity BS Buy Sell Last Gain Intended Rough Group (Loss) Risk Percent 4 Jun Ethanol C 124.40 111.50 110.90 $-15,084 14,964 5.6% Energies 7 Jun Australian Dollr C 64.29 65.91 65.65 $ 11,130 14,980 22.2% Currency 6 Jun Euro Currency C 108.24 109.82 109.60 $ 11,670 14,925 22.2% Currency 1 Jun Gold S 176.87 172.19 $ 4,650 14,980 16.7% Prec Met 4 Aug Feeder Cattle C 128.83 137.00 128.88 $ 16,220 15,000 5.6% Meats 5 Sep Hi Grade Copper S 246.80 244.40 $ 2,850 14,875 5.5% Copper 5 Jun Japanese Yen L 92.91 92.96 $ 163 14,938 22.2% Currency 4 Jul Coffee "C" L 104.62 104.75 $ 75 14,985 11.1% Softs 4 Jul Lumber S 365.00 370.30 $ -2,452 14,960 5.6% Lumber 10 Aug Natural Gas Mini L 19.19 19.33 $ 50 14,975 5.6% Nat Gas 1 Jun NASDAQ 100 E-Min C 888.30 910.80 935.60 $ 420 14,996 5.6% Stock Id 10 Jul Oats C 301.00 321.70 319.80 $ 10,050 14,900 11.1% Grains 10 Jul Orange Juice C 117.65 127.24 127.00 $ 14,085 14,925 11.1% Softs 6 Jul Platinum C 77.06 93.92 86.65 $ 50,400 14,970 16.7% Prec Met 4 Jun Swiss Franc S 103.40 103.13 $ 1,230 14,950 22.2% Currency 2 Jul Silver Mini C 15.57 18.10 17.36 $ 12,590 14,950 16.7% Prec Met 10 Jul Soybean Meal C 283.20 293.10 282.50 $ 9,600 14,900 11.1% Grains 10 Jun Treasury Notes C 138.80 139.11 139.06 $ 2,800 14,900 5.5% Finance Adjustment for Open Positions: -($ 6,566) Prior to 5/11: Other Gains/-Losses This Reporting Period: $ 511,564 *** *** For Contracts Closed or Rolled Forward __________ Total for all Trades: $ 635,445
Trading in commodities involves substantial risk and past performance is no guarantee of future profits. Zenith does not sell advice nor does it manage discretionary accounts other than its own. Readers should be aware of the vested interest that all traders/brokers have in encouraging other traders to make the same transactions. No one should follow investment advice blindly. This web site should be used only as a "sounding board" for confirming one's own opinion. Any suggested order placements should be reviewed and reset to fit current market conditions by individual traders.
Recommendations may include trades which have already been made on the same or a previous day, otherwise the issue is placed on a "watch list." Suggested trades are based upon an approximate maximum $15,000 capitalization requirement per trade, depending upon initial contract margin requirements. Zenith's actual trades may be larger. $22 per round turn for futures is deducted from profit figures. Commodity option trade recommendations are not tracked, but performance should parallel that of the underlying commodity's.