Strong Chinese demand, deteriorating crop conditions in the US, and a weak US dollar have helped to push the prices of corn and soybeans above key resistance levels. This is setting the stage for a… Read More
Soybeans Hit Target & Surprise Low-Cost Play in Corn
In our last blog post we asked the question, “Do surging soybeans indicate a sea change in commodities?” The answer appears to be “yes.” Soybeans surged as high as $9.66 per bushel in overnight trading… Read More
Do Surging Soybeans Signal a Sea Change in Commodities?
One of the most valuable signals of underlying change in a market is its reaction to news. A sharp decline following “bad news” can signal a scenario in which this bad news is already priced… Read More
Ten Year T-Note Low-Cost Contrarian Play
Interest rates measure the cost of money, which means they eventually help determine the cost of everything else. In “normal” markets, the cost of money is determined by the market itself. But today’s interest rate… Read More
Gold Makes New All-Time Highs; Silver Continues to Soar
Gold hit our $1,920 per ounce target in overnight trading, slicing through its old highs of $1,923.70 in the process. This sets the stage for an assault on our next target of $2,180. Gold’s two-year… Read More
Silver Finally Breaks Out
Silver has busted out, slicing through its 2016 high of $21.23. The poor man’s gold took out our first upside target of $19.25 per ounce on July 9. It is now within a stone’s throw… Read More
Gasoline Running on Empty – Time to Exit Longs
Commodity markets often have seasonal tendencies due to planting cycles, weather and/or demand. Hog and cattle prices tend to peak in mid-summer during prime grilling season. Gasoline futures tend to peak in late spring or… Read More
Stock Rally Likely to Prove Ephemeral
There has been a lot of talk in the financial press about the shape of the COVID-19 recovery. “V” shapers view the huge 38% rally in the S&P 500 as predictive and a solid signal… Read More
Silver Soars & Posts Big Gains Versus Gold
Silver is finally gaining on gold, reversing nearly all of its richer cousin’s gains since silver’s coronavirus collapse. It took 125 ounces of silver to buy one ounce of gold barely a month ago. This… Read More
Beans Still a Bargain
Soybeans were a bargain when we wrote about them in early March. We believe they still are. Soybeans have labored under the deflationary conditions plaguing the rest of the agricultural commodity sector. COVID-19 is just… Read More