Commercial Traders Force Expiration Rally

Commitment of Traders Report Shows Strong Build in Soybean Meal

November 27, 2012

This trade setup is merely a random sample of the day’s trades generated by COT Signals. To track our work their and receive all of our nightly trading recommendations, click here.

  Commercial traders have more than doubled their position in December soybean meal futures over the last month. Clearly they have been ahead of the curve in their anticipation of the seasonal strength the market typically shows between mid October and contract expiration. Friday is first notice day and speculators will need to be out of the market by Thursday’s close. Therefore, there is a strong possibility that the December soybean meal futures will rally on speculator short covering into the notice period. We will place a protective sell stop at the recent low of 420.2 and look to take profits by Thursday’s close.

Commitment of Traders Report Build in Commercial Position

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ANDREW WALDOCK

866-990-0777

This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.

 

Commitment of Traders Shows Sugar Short Trap

Commitment of Traders Report Springs Bear Trap on Sugar Futures Speculators

November 13, 2012

This trade setup is merely a random sample of the day’s trades generated by COT Signals. To track our work their and receive all of our nightly trading recommendations, click here.

This morning’s trade in the sugar futures market takes a look at the peculiarity of, “roll over.” When futures markets expire traders must determine whether they are going to make delivery of the commodity, take delivery of the commodity or, the vast majority of the time, offset the position and move into the next available expiration. This meant offsetting October positions and creating a new position for March delivery.

Short covering in the October contract forced the market back towards 21.50. New selling was unable to push the market below the October contract low of 18.81. Commercial momentum has turned positive and we view this as a short trap for the speculators. We have bought March sugar futures and placed a protective sell stop at 18.86.

 

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ANDREW WALDOCK

866-990-0777

This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.

Commitment of Traders Sell Signal in Australian Dollar

Key Reversal Bar Triggers Short Sale in Australian Dollar

November 11, 2012

This trade setup is merely a random sample of the day’s trades generated by COT Signals. To track our work their and receive all of our nightly trading recommendations, click here.

This morning’s trade in the Australian Dollar Futures ties uses both fundamental and technical analysis. Fundamentally, the commercial traders are bearish on the Australian Dollar. Recent speculative buying pushed the market to overbought levels heading into Friday’s trade.
Technically, we saw just how weak the speculative hands are in the market as the Australian Dollar put in an outside day closing below Thursday’s low. This is especially important as Friday’s high marked a new 30 day high and was followed by an immediate washout.
We are selling the Australian Dollar Futures and placing a protective buy stop at Friday’s high of 103.84. This represents about $600 in risk at current market levels.

Key Reversal Bar in Australian Dollar Futures

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ANDREW WALDOCK
866-990-0777
This information is not to be construed as an offer to sell or a solicitation or an offer to buy the commodities herein named. The factual information of this report has been obtained from sources believed to be reliable, but is not necessarily all-inclusive and is not guaranteed as to the accuracy, and is not to be construed as representation by Commodity & Derivative Adv. The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.