We’ve been a little busy around the office, and for whatever reason, the DJCS index took forever to update, but we have all the data and a moment to breathe, so it’s time to bring us up to speed on how the various asset classes are faring in 2012. We may be inching towards the end of July at this point, but this is where things stood as of the end of June.
Category: Markets
23
Jul
2012
18
Jul
2012
Why the Futures Trade Matters
Grain prices are soaring as the heat and drought parches crops across the Midwest. To us, this serves as an excellent reminder of why the futures industry is too valuable to be hobbled by the corruption and incompetence of a few.
10
Jul
2012
Meanwhile, in the Futures Markets…
Despite the catastrophe unfolding at PFGBest and all our work trying to solidify the return of customer funds, the world has continued to operate more or less as usual. So how have market conditions been in the meantime?
09
Jul
2012
Waking the Dead on Supply & Demand
Energy companies know they must be prepared for a wide variety of problems beyond their control, something natural gas producer Chesapeake Energy is experiencing firsthand. Their problem? Extracting resources without waking the dead.
02
Jul
2012
Long-only Commodity ETFs vs. Futures- June 2012
Corn and natural gas futures bounced back from the May slide, while crude oil continued its downward trajectory. But in all three cases you would have been better off in December futures contracts than in long-only commodity ETFs. If you’re going to adopt a long-only strategy, why invest in an ETF when you can just roll December futures contracts annually?
29
Jun
2012
Risk On (The Atomic Green Rally, Part II)
The last trading day of June has kicked off with a risk on rally that rivals the nuclear green day we pointed out near the beginning of the month. Today’s rally has brought even more of the short positions from our hypothetical trend following model close to the point at which the trades will be stopped out, but a downturn could still benefit the positions that are still open.
28
Jun
2012
Corn Escaping the Risk On/Off Trade?
We keep a close eye on the risk on/off trade, as it plays a huge role in a manager’s ability to effectively diversify. Recently, we’ve been optimistic about the decoupling of grains (especially corn) from the rest of the market. Just how has that been working out?
26
Jun
2012
Bonds Winding Up?
After climbing in May on the backs of the big risk market Euro fueled selloff, US 30 Year Bonds have spent most of June trading in a narrow range. It may just be a fizzle, but we’re hoping it’s the windup for a much bigger move we’ve been awaiting for a long time.
25
Jun
2012
Has June Crossed the Line?
The June bounce is not the encore trend followers wanted after May’s sell-off. Since many trend followers exit positions when prices cross over the 100-day moving average, we wanted to know: which markets have crossed the line so far this month?
22
Jun
2012
The Touch… The Feel… of Limit Moves in Cotton
It’s been a bumpy month or two in the markets, with reversals reminiscent of last year’s wild ride, punctuating continued fears about global growth. However, one commodity in particular has been whipsawed by the worry: cotton.
