Welcome to this week’s edition of The Weekly Call, your trusted source for high-quality commodity setups and trading strategies. Since October 2016, our approach has delivered an impressive 777% return, and we continue to share the insights and methodologies that drive these results with this post #420. This week, we’ll explore the latest market trends, actionable trade setups, and global economic factors influencing commodities like sugar, coffee, live cattle, and gold.
Global Market Overview:
Over the past week, global markets have exhibited notable volatility, influenced by a combination of economic data releases, corporate earnings reports, and geopolitical developments.
- United States: The Dow Jones Industrial Average achieved a record close at 44,296.51, marking a 2% weekly gain. The S&P 500 and Nasdaq Composite also advanced by 1.7% each, reflecting investor optimism amid robust economic indicators.
- Europe: European markets experienced mixed performances, with the FTSE 100 index in the UK dropping 0.4%, reflecting slower economic growth and ongoing inflation challenges.
- Asia: Asian markets presented a mixed picture; Japan’s Nikkei 225 rose 0.3%, supported by a weaker yen benefiting exporters, while China’s Shanghai Composite index fell 1.5% despite higher-than-expected retail sales.
Economic Data Highlights:
- U.S. Inflation: The core Personal Consumption Expenditures (PCE) index rose 0.3% in October, with annual increases expected at 2.8%. Federal Reserve Chair Jay Powell noted that inflation progress has been more “bumpy” than anticipated, influencing expectations for potential interest rate cuts next month.
- Eurozone Inflation: October headline inflation is expected to rise to 2.4%, while economic slowdown remains a concern. The Eurozone’s inflation data, to be released on Friday, will indicate potential European Central Bank (ECB) rate cuts.
Commodities:
- Crude Oil: Oil prices have edged up, with U.S. crude oil increasing to $69.54 per barrel and Brent crude rising to $73.56 per barrel, influenced by escalating hostilities in the Ukraine war and signs of improving demand from China.
- Natural Gas: Natural gas futures surged by 18% this week, hitting a one-year high due to forecasts for colder U.S. weather and potential LNG supply disruptions in Europe. The December natural gas contract settled at $3.34 per million British thermal units, reflecting increased heating demand amid declining inventories.
Cryptocurrency:
- Bitcoin: Bitcoin approached $100,000, bolstered by President-elect Donald Trump’s pro-crypto stance. Despite strong performance, Barry Gill of UBS Asset Management predicts better opportunities outside the U.S. market in 2025 due to its high valuation and limited growth potential.
Corporate Earnings:
- Nvidia: Nvidia’s stock slid on Wednesday despite issuing an optimistic sales forecast for the AI giant’s fourth quarter amid the ongoing surge in demand for chips that enable generative AI.
- Tradeweb Markets: Tradeweb Markets, a leader in financial AI, is nearing a buy point of 136.13 and has shown significant growth in earnings and stock value. The company’s third-quarter results showed a 37% sales increase to $448.9 million and a 36% rise in earnings per share to 75 cents, driven by close client collaboration amid volatile markets.
Geopolitical Developments:
- Middle East Tensions: Escalating hostilities in the Ukraine war have influenced oil prices and investor sentiment, contributing to market volatility.
Investor Insights:
- Diversification: Given the current volatility in both metals and energy markets, investors are advised to maintain a diversified portfolio to mitigate sector-specific risks.
- Geopolitical Monitoring: Staying informed about geopolitical developments, particularly in the Middle East, is crucial, as these events can have immediate and significant impacts on commodity prices and related stocks.
- Regulatory Developments: Upcoming policy decisions, especially those related to environmental regulations and energy production, should be closely watched, as they may influence market dynamics and investment strategies.
Stay tuned as global market conditions continue to evolve, and trade smart!
As always, stay informed and adjust your strategies based on the evolving market conditions. All trades are posted on our Private Twitter Feed for subscribers and are included in the track record posted below under Completed Trades. I am currently trading 15 lots given the account balance and will adjust as necessary based on market developments.
The Weekly Call can now be auto-traded on Striker.com. Just call Striker Securities and open an account of at least $25,000 and every trade I make here will be made for you automatically there. I am planning to use the same methodology and risk management approach with the auto-traded account at Striker that I have been using here. If you have a Daily Update or Trader Triple Play membership, there is no subscription fee for the auto-traded account at Striker. For more information, call Striker.com and speak with William at (800) 669-8838. For more information, you can also watch this video from our subscriber Q&A HERE. Trading futures contracts and commodity options involves substantial risk of loss, and may not be appropriate for all investors. Past performance is no guarantee of future results. Please see our Disclaimer for more information.
The trades below are discussed on the Daily Update: – Click Here for a FREE Trial
Sugar
Coffee
Live Cattle
Gold (GC)
Come see what we are trading – Try our 30 day FREE trial – Click Here
COMPLETED TRADES
Track Record of Completed Trades
The purpose of this blog is to demonstrate how to swing trade futures using our methodology to select high-quality setups and manage the trade with our risk management approach. This track record is based on entries and exits as posted in this blog. I am currently using 15 lots for the Striker trades which is based on this account being over $375,000. Each lot for auto trading at Striker requires $25,000 per lot. See the videos below for more information.
Track Record January 2022 thru December 2022 Click Here.
Track Record January 2021 thru December 2021 Click Here.
Track Record January 2020 thru December 2020 Click Here.
Track Record January 2019 thru December 2019 Click Here.
Track Record January 2018 thru December 2018 Click Here.
Track Record October 2016 – December 2017 Click Here.
*** Trading futures contracts and futures options involves substantial risk of loss, and may not be appropriate for all investors. By reading this web site, you acknowledge and accept that all trading decisions are your sole responsibility. Trading strategies referenced on this web site and associated documents and emails are only suggestions, no representation is being made that they will achieve profits or losses. Past performance is no guarantee of future results.. See our disclaimer here.
Completed trade in Cattle as of November 28th
We expect subscribers to have captured 60% of the swing in live cattle which is over $14,500 in profit using a margin of only $5,115. A great example of using leverage in futures.
Completed Trade in Coffee as of December 12th
The total swing was $37.00 and we expect subscribers to have captured 60% of a wing or $22 in coffee for a profit of over $25,500 using a margin of $8,850. A great example of using leverage in futures. See the video below for the review of the trade.
Completed Trade in Natural Gas as of January 2nd
We were stopped out of out last 1/3 position as weather-related news created a gap down on January 2nd and a possible flat with support at 3.196. This concludes our trade with natural gas; we exit with 550 ticks on 2/3s of a position with $8,500 in profit.
Completed Trade in Coffee as of January 19th
We exited the coffee trade on January 19th with $17 or over $15,000 in profit using a margin of $8,850. A great example of using leverage in futures.
Completed Trade in Gold as of February 8th
We exited the gold trade on February 8th with over $14,000 in profit. We entered on January 3rd and held the trade into the high window. We will re-enter gold in a few weeks after a backtest.
24th Nov 2024
