Commodity Trading

8 Markets In Contango And Backwardation

8 Markets In Contango And Backwardation

Where is crude going? Will the grain markets stay this low for much longer? When will stock indices take their dip? Will the U.S. Dollar rally? It’s a subliminal way of asking for a genie or a crystal ball, and the futures market equivalent of asking your neighbor how high Facebook or Amazon’s stock will […]

Potash Price Surge Could Lead To Higher Food Costs For Billions

Potash Price Surge Could Lead To Higher Food Costs For Billions

We are on the precipice of a food fight among 7 billion people, and potash will be right at the center of it. If you can add 200,000 people every day to the global population and account for a significant loss of farmland at the same time, you can begin to understand the dire food […]

Morgan Stanley Goes Bearish On Commodities Amid Brexit, China Slump

Morgan Stanley Goes Bearish On Commodities Amid Brexit, China Slump

There is a bull and bear case for commodities, a Morgan Stanley Global Metals Playbook notes. The June 27 report takes a decidedly bearish view of hard commodities in general. It issues a mostly neutral or even more pronounced bearish take on commodities in general, with one exception. The report contrasts their recommendation from last […]

Brexit: The Pound Will Survive, The Euro Will Not

Brexit: The Pound Will Survive, The Euro Will Not

Friday, June 24th will be remembered as a Black Day for the British Pound. On that day, investors, shocked by the “leave” vote for Brexit, pushed the Pound off a cliff, toward its worst daily loss since 1985. And yet, despite the Pound being at the eye of the storm after the Brexit vote, it’s […]

Price Of Gold: Do Imports By China Or India Really Matter?

Price Of Gold: Do Imports By China Or India Really Matter?

They Will Never Get It… We and many others have made a valiant effort over the years to explain what actually moves the gold market (as examples see e.g. our article “Misconceptions About Gold”, or Robert Blumen’s excellent essay “Misunderstanding Gold Demand”). Sometimes it is a bit frustrating when we realize it has probably all […]

Warning: Sell These 3 Popular Stocks Today

Warning: Sell These 3 Popular Stocks Today

Notorious real estate investor Sam Zell, who called the 2008 market crash, is back at it again, saying a recession is imminent in 2017. There are many warning signs flashing, and the three stocks profiled today are most at risk. The billionaire and contrarian investor, Sam Zell, has been getting increasingly negative on the United […]

Natural Resource Stocks

This Trade Points To An Energy Market Bottom…

This Trade Points To An Energy Market Bottom…

A Risky Bet On An Energy Market Bottom… No doubt about it, things have gone from bad to worse in the energy space.  West Texas Intermediate (WTI) crude oil recently slid to $26 a barrel thanks to ongoing global oversupply issues. Making matters worse, natural gas is sliding back towards multi-year lows under $2.00 mmBtu […]

Chesapeake Energy: Another One Bites The Dust?

Chesapeake Energy: Another One Bites The Dust?

Is Chesapeake Energy Headed To Bankruptcy Court? Things are quickly going from bad to worse in the US energy space… Case in point, shares of one of the largest natural gas producers in the US sank 50% in yesterday’s trading session.  Chesapeake Energy $CHK plunged as low as $1.55 a share as panicked investors ran […]

SandRidge Energy Delisted:  What To Do Now…

SandRidge Energy Delisted: What To Do Now…

SandRidge Energy Delisted- Now What? No doubt about it, the collapsing price of crude is still wreaking havoc on the oil industry.  And nowhere is the pain more evident than the small-cap oil exploration space.  Fact is, this area of the energy market has been a minefield since late 2014 when West Texas Intermediate (WTI) […]

Occidental Petroleum $OXY: Unusual Call Option Activity…

Occidental Petroleum $OXY: Unusual Call Option Activity…

Big Call Option Buyer In Occidental Petroleum $OXY! As I mentioned a few days ago, tomorrow’s OPEC meeting has big consequences for the oil market.  If smaller OPEC members convince Saudi Arabia to cut production, we could see a sudden upturn in oil prices.  On the other hand, if the Saudis stick to their guns, an […]

Energy Recovery $ERII Scores Huge Contract…

Energy Recovery $ERII Scores Huge Contract…

Energy Recovery $ERII Just Hit The Jackpot… Pressure energy technology provider, Energy Recovery $ERII, just landed a huge contract with oil field services giant Schlumberger $SLB. In exchange for exclusive rights to $ERII’s VorTeq hydraulic pumping system for the next 15 years, $SLB is forking over $125 million in upfront payments to $ERII, plus annual […]

Is Monsanto A Buy At Multi-Year Lows?

Is Monsanto A Buy At Multi-Year Lows?

Monsanto– Great Investment, Or Steer Clear? Without question, Monsanto $MON is one of the most controversial companies in existence.  For years, the Agricultural chemical/bio-technology giant has faced harsh criticism due to their involvement in genetically modified organisms (GMOs). I’ll assume you know what GMOs are (and the controversy surrounding them), and not waste precious time […]

Commodity ETFs

Oil ETFs Set Up For Failure?  This One Is…

Oil ETFs Set Up For Failure? This One Is…

Be Careful With Oil ETFs Right Now! Believe it or not, the price of crude oil is plummeting below $30 a barrel… It wasn’t long ago that suggesting oil could trade at such ridiculously low prices would have got you laughed out of the room.  After all, the price of West Texas Intermediate (WTI) crude […]

Silver ETFs For The Savvy Speculator…

Silver ETFs For The Savvy Speculator…

Silver ETFs For Every Market… As I mentioned earlier this week, the price of silver is facing some strong fundamental headwinds.  The metal is trading under $16.00 an ounce for the first time since early May, and looks as though it may drop further to test $15.50- and possibly much lower. No doubt about it, […]

Your Go-To Energy Focused Leveraged ETN List…

Your Go-To Energy Focused Leveraged ETN List…

Energy Traders Will Love This Leveraged ETN List! A few weeks ago we discussed the best energy-focused commodity ETFs/ETNs investors can buy.  You’ll find those articles here and here. While the basic ETFs discussed in those recent articles are highly useful in various situations, they’re not as exciting as the ones we’re looking at today. I’m […]

A Checklist For Every Commodity ETF Trade…

A Checklist For Every Commodity ETF Trade…

Three Questions I Ask Before Every Commodity ETF Trade… I’m going to let you in on a little secret.  It’s a relatively unknown fact that every commodity ETF trader must understand.  But the truth is, most don’t. Here it is… If long-term market success is your goal, you must have a trading plan. That’s right, […]

Your Go-To Energy ETFs List- Part 2

Your Go-To Energy ETFs List- Part 2

Equity Energy ETFs:  Products For Every Taste! Last week we discussed the best ETFs for investors looking to profit from price movements in energy commodities.  We looked at top products like the US Oil Fund $USO, Powershares DB Oil Fund $DBO, and US Natural Gas Fund $UNG. We also covered ETNs, like the S&P GSCI […]

Your Go-To Energy ETF List – Part 1

Your Go-To Energy ETF List – Part 1

An Energy ETF For Every Need! We’ve been talking a lot about Exchange Traded Funds (ETF) and Exchange Traded Notes (ETN) in recent articles.  These relatively new products offer investors a simple and efficient means to invest/trade in various industries and markets. The energy markets are no exception.  There are numerous commodity ETF and ETN […]

Energy

Energy Earnings Expected To Rise 307 Percent In 2017

Energy Earnings Expected To Rise 307 Percent In 2017

Oil prices will continue to be a focus topic for the market next week, as major oil producers are expected to hold informal meetings in Algiers. The price of oil is a key earnings driver for companies in the S&P 500 Energy sector. For Q3 2016, the Energy sector is projected to report the largest […]

Did The World’s Biggest Oil Company Cheat In Valuing Its Reserves?

Did The World’s Biggest Oil Company Cheat In Valuing Its Reserves?

A very important issue just emerged in the oil and gas world. Driven by an investigation from some of the biggest prosecutors in America. Looking at how the world’s largest E&Ps value their in-ground oil and gas reserves. The Wall Street Journal broke the story yesterday that the U.S. Securities and Exchange Commission (SEC) is investigating […]

Moody’s: Oil Crash “Catastrophic”; Worse That Dot-Com Bust

Moody’s: Oil Crash “Catastrophic”; Worse That Dot-Com Bust

Across the North American oil patch, the 2014 oil bust is still playing out. For outsiders, it may look as if the crash is now over and companies are starting the recovery process. However, depressed oil prices are still wreaking havoc in the North American oil industry. The most recent tally of oil patch bankruptcies […]

Why Wall Street Is Throwing Billions At The Permian

Why Wall Street Is Throwing Billions At The Permian

The collapse of oil prices has ground shale drilling to a halt, but the one region where drilling is still active, and even increasing, is in West Texas. The Permian Basin is one of the last profitable areas to still drill with sub-$50 oil, and as other regions fall by the wayside, an increasing portion […]

Here Is What Went Wrong With U.S. Oil Market

Here Is What Went Wrong With U.S. Oil Market

The chart shows what a truly relentless glut looks like It usually comes in small-sounding and unlarming increments. But add up enough of these increments, and pretty soon you have some real numbers. Today was another one of those, and it hit a huge milestone. The Energy Information Administration released its new set of weekly […]

OPEC’s Output Freeze: What Has Changed Since Doha?

OPEC’s Output Freeze: What Has Changed Since Doha?

It’s possible that OPEC is crying wolf with hints of an output freeze next month in Algiers; but it’s also possible that they are ramping up production to take the sting out of a freeze. This is a delicate balancing act that the Saudis need to play very carefully. The official chatter is that the […]

Precious Metals

Does The Mining Sector Hold The Key To Global Growth?

Does The Mining Sector Hold The Key To Global Growth?

The global economic cycle is starting to turn, but political shocks risk undermining the whole recovery according to Credit Suisse’s Global Strategy research team lead by James Sweeney. According to the team’s Global Cycle Notes research document, sent out to clients at the end of last week euphoric credit markets, a stabilizing mining sector and a […]

2016 Superstars: Gold And Silver Miners

2016 Superstars: Gold And Silver Miners

The first half of 2016 was definitely good for those who invested in precious metals. However, great results of gold and silver are nothing to compare to the equity of miners. Since the bottom of 18 January index of small miners (with a capitalization of 5 bn USD or below) nearly tripled. I have a […]

TPG & Mick Davis Just Pulled $1B Out Of The Mining Sector

TPG & Mick Davis Just Pulled $1B Out Of The Mining Sector

This past weekend, I discussed the problems facing big natural resource investment funds. Noting how deep-pocketed buyers have been unable to find quality assets to pick up, even at the depths of the recent commodities downturn. And news over the weekend shows some other big observers are also watching these issues. One of the funds […]

Managed Futures Set To Re-Emerge As Performance Leader?

Managed Futures Set To Re-Emerge As Performance Leader?

Managed futures CTAs are posting gains in June as equity long / short program profitability sags, a recent Credit Suisse report notes. While CTAs, measured by the Credit Suisse Hedge Fund Index, are down -1.7% year to date, surrendering significant gains early in the year as predicted in ValueWalk, the Natixis ASG Managed Futures mutual […]

First Loss Of Platinum Production From South Africa Labor Issues

First Loss Of Platinum Production From South Africa Labor Issues

The story on major labour issues in South Africa’s platinum sector took a deadly turn this week. Leading to the first mine shutdown of the year. That came at the Zondereinde platinum mine in Limpopo province. Where operator Northam Platinum was forced to halt underground production after a clash between two rival mineworkers unions. Details are […]

2 Stocks To Buy Now That Gold Is Heating Up

2 Stocks To Buy Now That Gold Is Heating Up

After nearly half a decade of being shunned, gold is finally shining once again. Hedge funds are flocking to the asset in droves, but just buying this yellow metal isn’t enough, there are even better plays to buy today. Gold is back over $1,300 an ounce for the first time in sixteen months after its […]

Other News

GDP Growth Trend – Even Less Than Meets The Eye

GDP Growth Trend – Even Less Than Meets The Eye

The most common statistic used to measure the size and growth rate of a nation’s economy is Gross Domestic Product (GDP). However, GDP as most commonly used can be a flawed measurement if one tries to infer that the size or growth of economic activity is well correlated to the prosperity of its people. Consider […]

Why Is US Economic Growth So Sluggish?

Why Is US Economic Growth So Sluggish?

The U.S. economy has been pedaling along in the slow lane for almost 10 years now. Real GDP growth, well below the historic 3-plus percent, always seems to be heading south. Growth for 2016’s first half came in at just 1 percent. And productivity, the amount of GDP stuff produced on average by U.S. workers, […]

The US Economy Starting The Second Half Of 2016 On An Upbeat

The US Economy Starting The Second Half Of 2016 On An Upbeat

After a depressed and slow growth in the first half of 2016, the US economy could be on its track to stabilizing and getting back to its expected growth trajectory. Based on economic data released this month by different government agencies, the US economy seems to be starting the second half of 2016 on an […]

Housing Stocks Rally To A New Roof?

Housing Stocks Rally To A New Roof?

A key index of housing stocks hit a 9-year high today – but will its break above the 2015 high be sustainable? The recent historically tight range-bound trade in the major stock averages continues to unfold, but in a rather interesting manner. The lack of direction in the averages is partially the result of a […]

Negative Rates: We’re Gonna Need A Bigger Vault

Negative Rates: We’re Gonna Need A Bigger Vault

I always liked the famous scene in the movie Jaws where the film’s hero, police Chief Brody, finally gets a close-up look at the size of his killer shark nemesis. “We’re gonna need a bigger boat,” he says, incredulous at the size of the monster fish. These days, we have a monetary nemesis called negative […]

Treasury Market Yields Drop To Their Historic Low Of 1.37%

Treasury Market Yields Drop To Their Historic Low Of 1.37%

2016 ½ We have just passed the half way mark for 2016, and it has been a year of surprises. On January 1st the U.S. 10-year Treasury had a yield of 2.25%, today it is at a historic low of 1.37%. The Fed had just raised rates in December for the first time since 2006, […]