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 #422. 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.
Equity Markets:
- United States: The S&P 500 and Nasdaq Composite reached record highs earlier in the week, driven by strong economic indicators and investor optimism. The SPDR S&P 500 ETF Trust (SPY) closed at $607.81, up 0.21%, while the Invesco QQQ Trust Series 1 (QQQ) ended at $526.48, rising 0.89%. The SPDR Dow Jones Industrial Average ETF (DIA) saw a slight decline, closing at $447.15, down 0.34%. Investors are closely monitoring upcoming economic data, including the U.S. jobs report, for insights into the Federal Reserve’s monetary policy direction.
- Europe: European markets have shown slight gains amid concerns over the Russia-Ukraine conflict. The FTSE 100 increased by 0.1%, Germany’s DAX by 0.6%, and France’s CAC 40 by 0.5% on November 20.
- Asia: Asian markets presented a mixed picture; Japan’s Nikkei 225 fell 0.2%, reflecting a trade deficit for the fourth consecutive month, while China’s Shanghai Composite index remained relatively stable.
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 prices have experienced moderate increases, driven by early winter demand forecasts in the U.S. and stable European LNG imports ahead of the cold season.
Cryptocurrencies:
- Bitcoin (BTC): Bitcoin has shown resilience, holding firm as optimism around a potential spot ETF approval from the U.S. SEC grows.
- Ethereum (ETH): Ethereum continues to benefit from the success of its Shanghai upgrade and expanding layer-2 solutions, such as Optimism and Arbitrum.
Corporate Developments:
- Apollo Global Management and Workday: Shares of Apollo Global Management Inc. and Workday Inc. surged after S&P Dow Jones Indices announced their inclusion in the S&P 500 index, effective before trading on December 23. Apollo’s shares rose by approximately 6%, and Workday’s shares increased by over 8%. This move is seen to better represent the large-cap market space.
- Super Micro Computer: Super Micro Computer received an extension from the Nasdaq stock exchange to file essential financial reports, including the 10-K annual report for the fiscal year ending June 30 and the 10-Q report for the quarter ending September 30. This extension gives them until February 25 to submit the filings. Consequently, Super Micro’s stock soared nearly 10% in late trading, continuing a notable rebound since mid-November.
Economic Indicators:
- U.S. Jobs Report: The U.S. economy added 227,000 nonfarm payroll jobs in November, slightly exceeding forecasts. The unemployment rate rose marginally to 4.2% from 4.1%, mainly due to technical factors. This data supports expectations of a Federal Reserve interest rate cut in December.
- European Central Bank (ECB): The ECB is anticipated to lower its key deposit rate by a quarter percentage point to 3% at its final policy meeting of 2024. Investors expect further cuts next year, potentially down to 1.75%, as the ECB updates its GDP growth and inflation forecasts.
Geopolitical Developments:
- U.S. Tariff Proposals: President-elect Donald Trump has proposed tariffs on imports from Canada, Mexico, and China, potentially affecting various industries, including oil, gas, agriculture, sugar, and potash. These tariffs could disrupt established trade and supply chains, leading to increased costs and supply chain disruptions across these critical sectors.
- Bolivia’s Economic Crisis: Bolivia is experiencing a severe economic crisis marked by escalating fuel shortages, soaring food prices, and a sharp decline in foreign currency reserves. The crisis has triggered public anger and widespread protests demanding solutions from President Luis Arce’s government.
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.
08th Dec 2024
